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Jump to financial tables

City Of Clayton, California
Government Wide
Statement Of Net Position
June 30, 2022

Governmental Activities Business Type Activities Total Primary Government
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments $ 13,441,679 $ - $ 13,441,679
Accounts Receivable Net Of Allowance 1,133,315 - 1,133,315
Accrued Interest Receivable 25,257 - 25,257
Internal Balance 120,893 (120,893) -
Prepaid Expenses 52,578 - 52,578
Total Current Assets 14,773,722 (120,893) 14,652,829
Noncurrent Assets:
Other Capital Assets 3,170,453 - 3,170,453
Notes And Loans Receivable Net Noncurrent 3,311,550 - 3,311,550
Capital Assets Not Being Depreciated 3,133,754 167,738 3,301,492
Capital Assets Being Depreciated Net 25,982,451 841,465 26,823,916
Total Noncurrent Assets 35,598,208 1,009,203 36,607,411
Total Assets 50,371,930 888,310 51,260,240
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Of Resources Pension 1,285,641 - 1,285,641
Deferred Outflows Of Resources OPEB - - -
Total Deferred Outflows of Resources 1,285,641 - 1,285,641
LIABILITIES
Current Liabilities:
Accounts Payable 149,907 2,671 152,578
Deposits Held for Others - 5,500 5,500
Accrued Wages Payable 37 - 37
Unearned Revenue 332,166 - 332,166
Compensated Absences Payable Current 83,645 - 83,645
Other Current Liabilities 74,358 - 74,358
Total Current Liabilities 640,113 8,171 648,284
Noncurrent Liabilities:
Compensated Absences Payable Non Current 83,645 - 83,645
Net OPEB Liability 578,315 - 578,315
Net Pension Liability 2,759,739 - 2,759,739
Leases Payable Due In More Than One Year 244,640 - 244,640
Total Noncurrent Liabilities 3,666,339 - 3,666,339
Total Liabilities 4,306,452 8,171 4,314,623
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Of Resources Pension 2,471,384 - 2,471,384
Deferred Inflows Of Resources OPEB - - -
Total Deferred Inflows of Resources 2,471,384 - 2,471,384
NET POSITION
Net Investment In Capital Assets 29,116,205 1,009,203 30,125,408
Restricted Net Position For Other 9,890,048 - 9,890,048
Total Net Position 39,006,253 1,009,203 40,015,456



City Of Clayton, California
Government Wide
Statement Of Activities
For The Year Ended June 30, 2022

Expenses Charges For Services Operating Grants And Contributions Capital Grants And Contributions Governmental Activities Business Type Activities Total Primary Government
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 2,629,048 $ 437,626 $ 13,808 $ - $ (2,177,614) $ - $ (2,177,614)
Public Safety Services 2,736,817 48,292 397,461 - (2,291,064) - (2,291,064)
Public Works Services 2,509,096 331,218 2,344,113 44,634 210,869 - 210,869
Community and Economic Development Services 356,450 142,299 - 76,140 (138,011) - (138,011)
Parks and Recreation 729,729 42,903 - - (686,826) - (686,826)
Total Governmental Activities 8,961,140 1,002,338 2,755,382 120,774 (5,082,646) - (5,082,646)
Business-type Activities:
Convention Center Services 60,694 16,847 - - - (43,847) (43,847)
Total Business-type Activities 60,694 16,847 - - - (43,847) (43,847)
Total Primary Government 9,021,834 1,019,185 2,755,382 120,774 (5,082,646) (43,847) (5,126,493)
COMPONENT UNITS
Total Component Units - - - - - - -
GENERAL REVENUES AND TRANSFERS
General revenues:
Property Tax 2,846,766 - 2,846,766
Special Assessments 1,348,657 - 1,348,657
Sales and Use Tax 563,908 - 563,908
Business License Tax 162,881 - 162,881
Fines and Forfeitures and Penalties 587,740 - 587,740
Payment in Lieu of Taxes 174,443 - 174,443
Investment Income (281,502) - (281,502)
Other General Revenues 54,512 - 54,512
Gain (Loss) on Sale of Capital Assets 6,958 - 6,958
Total General Revenues 5,464,363 - 5,464,363
Transfers:
Total Transfers - - -
Total General Revenues and Transfers 5,464,363 - 5,464,363
NET POSITION
Change in Net Position 381,717 (43,847) 337,870
Net position (deficit), beginning of year 44,498,018 923,986 45,422,004
Net position (deficit), end of year 44,879,735 880,139 45,759,874



City Of Clayton, California
Governmental Funds
Balance Sheet
June 30, 2022

General Fund Landscape Maintenance District Successor Housing Agency American Rescue Plan Act Capital Improvement Program Other Governmental Funds Total Governmental Funds
ASSETS
Pooled Cash And Investments $ 5,985,880 $ 693,391 $ 1,857,892 $ - $ 2,674,360 $ 1,769,715 $ 12,981,238
Accounts Receivable Net Of Allowance 646,294 - - - - 487,021 1,133,315
Accrued Interest Receivable 25,257 - - - - - 25,257
Other Assets - - 3,170,453 - - - 3,170,453
Notes Receivable - - 3,311,550 - - - 3,311,550
Prepaid Deposits 52,578 - - - - - 52,578
Due from Others 120,893 - - - - - 120,893
Travel Advances Receivable - - - - - - -
Total Assets 6,830,902 693,391 8,339,895 - 2,674,360 2,256,736 20,795,284
LIABILITIES
Accounts Payable 1,826 54,858 - - 67,916 24,992 149,592
Other Liabilities 71,658 - - - - 2,700 74,358
Accrued Wages Payable 37 - - - - - 37
Compensated Absences Payable 83,645 - - - - - 83,645
Unearned Revenue - - - - - 332,166 332,166
Total Liabilities 157,166 54,858 - - 67,916 359,858 639,798
DEFERRED INFLOW OF RESOURCES
Other Deferred Inflows Of Resources 260,379 - 2,722,200 - - - 2,982,579
Total Deferred Inflows of Resources 260,379 - 2,722,200 - - - 2,982,579
FUND BALANCES
Fund Balance Nonspendable 173,471 - - - - - 173,471
Fund Balance Restricted - 32,509 5,617,695 - - 1,069,391 6,719,595
Fund Balance Committed 495,019 - - - - 709,802 1,204,821
Fund Balance Assigned - 606,024 - - 2,606,444 117,685 3,330,153
Fund Balances Unassigned 5,744,867 - - - - - 5,744,867
Total Fund Balances 6,413,357 638,533 5,617,695 - 2,606,444 1,896,878 17,172,907
Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,830,902 693,391 8,339,895 - 2,674,360 2,256,736 20,795,284



City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position
June 30, 2022

Amount
Fund balances for governmental funds 17,172,907
CAPITAL ASSETS
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet.
Non-depreciable capital assets 3,133,754
Depreciable capital assets (net of internal service fund assets of $493,547) 25,441,841
ACCRUAL OF NON-CURRENT REVENEUS AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because they are not available currently, but are taken into revenue in the statement of activities. 2,982,579
LONG-TERM ASSETS AND LIABILITIES
Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.
Net OPEB liability not reported on the Governmental Funds Balance Sheet 578,315
Compensated absences payable 83,645
Net pension liability not reported on the Governmental Funds Balance Sheet 2,759,739
Lease liability not reported on the Governmental Funds Balance Sheet 244,640
DEFERRED INFLOWS AND OUTFLOWS
Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance Sheet
Deferred outflows of resources for net pension liability 1,285,641
Deferred inflows of resources for net pension liability 2,471,384
Deferred outflows of resources for net OPEB liability
Deferred inflows of resources for net OPEB liability
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-wide Statement of Net Position. 1,000,736
Net Position of Governmental Activities 44,879,735



City Of Clayton, California
Governmental Funds
Statement Of Revenues, Expenditures And Changes In Fund Balance
For The Year Ended June 30, 2022

General Fund Landscape Maintenance District Successor Housing Agency American Rescue Plan Act Capital Improvement Program Other Governmental Funds Total Governmental Funds
REVENUES
Property Tax $ 2,846,766 $ - $ - $ - $ - $ - $ 2,846,766
Grants and Entitlements Restricted for Specific Programs - - 111,400 - - - 111,400
Special Assessments - 1,204,882 - - - 442,230 1,647,112
Sales and Use Tax 563,908 - - - - - 563,908
Business Licenses and Permits 162,881 - - - - - 162,881
Licenses and Permits and Franchise Fees 114,026 - - - - 140,326 254,352
Fines and Forfeitures and Penalties 151,409 - - - - - 151,409
Grants, Contributions and Donations from Federal Governmental Entities 135,233 - - 1,467,024 - 1,170,041 2,772,298
Vehicles Tax - - - - - - -
Payment in Lieu of Taxes 174,443 - - - - - 174,443
Cable Franchise Fees 587,740 - - - - - 587,740
Charges for Services, Fees 305,645 - - - - - 305,645
Use of Money and Property (185,018) (24,383) 17,961 - (80,986) (52,490) (324,916)
Other Revenues 40,844 - - - - 648 41,492
Total Revenues 4,897,877 1,180,499 129,361 1,467,024 (80,986) 1,700,755 9,294,530
EXPENDITURES
General Government Services, Administration 2,570,417 - - - - 126,650 2,697,067
Public Safety Services 2,684,319 - - - - 130,541 2,814,860
Public Works Services 333,423 1,424,676 - - - 383,356 2,141,455
Community And Economic Development Services 299,175 - - - - - 299,175
Parks and Recreation Department 336,592 - - - - 140,808 477,400
Capital Outlay 22,168 161,367 - - 869,925 48,889 1,102,349
Total Expenditures 6,246,094 1,586,043 - - 869,925 830,244 9,532,306
Excess (Deficiency) of Revenues Over (Under) Expenditures (1,348,217) (405,544) 129,361 1,467,024 (950,911) 870,511 (237,776)
OTHER FINANCING SOURCES (USES)
Other Financing Sources (Uses) - - 58,091 - - - 58,091
Transfers In 1,597,681 - - - 1,632,609 21,214 3,251,504
Transfers Out - (41,809) - (1,467,024) - (1,742,671) (3,251,504)
Total Other Financing Sources (Uses) 1,597,681 (41,809) 58,091 (1,467,024) 1,632,609 (1,721,457) 58,091
Net Change in Fund Balances 249,464 (447,353) 187,452 - 681,698 (850,946) (179,685)
FUND BALANCES
Beginning of year, restated 6,163,893 1,085,886 5,430,243 - 1,924,746 2,747,824 17,352,592
End of fiscal year 6,413,357 638,533 5,617,695 - 2,606,444 1,896,878 17,172,907



City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures, And Changes In Fund Balances To The Statement Of Activities And Changes In Net Position
For The Year Ended June 30, 2022

Amount
Net Change in Fund Balances- Total Governmental Funds 179,685
Amounts reported for governmental activities in the Statement of Activities are different because:
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).
Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) 74,942
Long-term compensated absences payable 745
Net change in pension liability and deferred inflows (outflows). 730,720
Unavailable revenues 113,947
Net change in lease liability 244,640
CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense
Capital asset acquisition, excluding internal service fund asset acquisitions. 1,217,507
Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425). 947,745
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities. 4,806
Change in Net Position of Governmental Activities on Statement of Activities 381,717



City Of Clayton, California
Proprietary Funds
Statement Of Net Position
June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments $ - $ 460,441
Total Current Assets - 460,441
Noncurrent Assets:
Land 167,738 -
Capital Assets Being Depreciated Net 841,465 540,610
Total Noncurrent Assets 1,009,203 540,610
Total Assets 1,009,203 1,001,051
LIABILITIES
Current Liabilities:
Accounts payable 2,671 315
Other Accounts Payable And Accrued Liabilities - -
Deposits Held for Others 5,500 -
Due to other funds 120,893 -
Total Current Liabilities 129,064 315
Noncurrent Liabilities:
Total Noncurrent Liabilities - -
Total Liabilities 129,064 315
NET POSITION
Net investment in capital assets 1,009,203 540,610
Unrestricted Net Position (129,064) 460,126
Total Net Position 880,139 1,000,736



City Of Clayton, California
Proprietary Funds
Statement Of Revenues, Expenses, And Changes In Net Position
For The Year Ended June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
OPERATING REVENUES
Charges for Services $ 16,847 $ 111,900
Total Operating Revenues 16,847 111,900
OPERATING EXPENSES
Benefits Expense 4,833 -
Expenses for Institutional Support 26,989 8,564
Depletion, Depreciation and Amortization Expense 28,872 100,425
Total Operating Expenses 60,694 108,989
NONOPERATING REVENUES (EXPENSES)
Gain (Loss) on Sale of Capital Assets - 6,958
Investment Income - (14,675)
Total Nonoperating Revenues (expenses) - (7,717)
Income (loss) before capital contributions (43,847) (4,806)
CAPITAL CONTRIBUTIONS
Total Capital Contributions - -
Change in net position (43,847) (4,806)
NET POSITION
Net position, beginning of year 923,986 1,005,542
Net position, end of year 880,139 1,000,736



City Of Clayton, California
Proprietary Funds
Statement Of Cash Flows
For The Year Ended June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from Sales and Services $ 20,847 $ 111,900
Payments to suppliers (24,734) (4,001)
Payments to employees (4,833) -
Payments for Claims - (4,428)
Net cash provided by (used in) operating activities (8,720) 103,471
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds From Transfers In 8,720 -
Net cash flows from noncapital financing activities 8,720 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Payments to Purchase Capital Assets - (153,184)
Proceeds from Sale of Capital Assets - 6,958
Net cash provided by (used in) capital and related financing activities - (146,226)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Interest on Investments - (14,675)
Net cash provided by (used in) investing activities - (14,675)
Net Increase (Decrease) in Cash and Cash Equivalents - (57,430)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents, beginning of year - 517,871
Cash and cash equivalents, end of year - 460,441



STATISTICAL SECTION

140

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141

STATISTICAL SECTION

TABLE OF CONTENTS

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.

Page

Financial Trends

143

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity

151

These schedules contain information to help the reader assess the City’s

most

significant local revenue sources.

Debt Capacity

159

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information

164

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information

165

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

142

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

2013

2014

2015

2016

Governmental activities:

Net investment in capital assets

$

29,988,389

$

29,344,437

$

28,653,515

$

28,929,140

Restricted

5,071,942

3,470,831

2,024,193

7,783,815

Unrestricted

4,829,960

6,306,416

4,781,508

7,028,670

Total governmental activities net position

39,890,291

39,121,684

35,459,216

43,741,625

Business-type activities:

Net investment in capital assets

1,322,815

1,286,748

1,250,681

1,221,999

Restricted

-

-

-

-

Unrestricted

(130,382)

(49,038)

(44,572)

(56,305)

Total business-type activities net position

1,192,433

1,237,710

1,206,109

1,165,694

Primary government:

Net investment in capital assets

31,311,204

30,631,185

29,904,196

30,151,139

Restricted

5,071,942

3,470,831

2,024,193

7,783,815

Unrestricted

4,699,578

6,257,378

4,736,936

6,972,365

Total primary government net position

$

41,082,724

$

40,359,394

$

36,665,325

$

44,907,319

Source: City of Clayton Finance Department.

143

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

2017

2018

2019

2020

2021

2022

$

29,349,667

$

28,976,510

$

29,790,706

$

29,780,115

$

28,793,685

$

29,116,205

7,731,727

12,059,042

11,915,594

12,046,964

13,156,670

9,890,048

7,835,030

3,836,715

3,009,835

3,433,238

2,492,751

5,873,482

44,916,424

44,872,267

44,716,135

45,260,317

44,443,106

44,879,735

1,184,742

1,147,485

1,110,485

1,073,743

1,038,076

1,009,203

-

-

-

-

-

-

(64,190)

(75,944)

(72,753)

(74,819)

(114,090)

(129,064)

1,120,552

1,071,541

1,037,732

998,924

923,986

880,139

30,534,409

30,123,995

30,901,191

30,853,858

29,831,761

30,125,408

7,731,727

12,059,042

11,915,594

12,046,964

13,156,670

9,890,048

7,770,840

3,760,771

2,937,082

3,358,419

2,378,661

5,744,418

$

46,036,976

$

45,943,808

$

45,753,867

$

46,259,241

$

45,367,092

$

45,759,874

144

City of Clayton

Statistical Section

Changes in Net Position - Last Ten Fiscal Years

(Accrual Basis of Accounting)

Fiscal Year

2013

2014

2015

2016

Expenses

Governmental activities:

General government

$

1,186,567

$

1,249,238

$

1,119,567

$

1,051,461

Public works

1,346,320

2,118,015

2,139,918

1,975,653

Parks and recreation services

1,100,584

352,498

339,894

583,120

Community and economic development

446,259

410,413

405,941

362,248

Public safety

1,925,266

2,016,145

2,006,052

2,060,621

Interest and fiscal charges

-

-

-

-

Total governmental activities expenses

6,004,996

6,146,309

6,011,372

6,033,103

Business-type activities:

Community gym

-

-

-

-

Endeavor Hall

60,117

65,351

66,606

67,668

Total business-type activities expenses

60,117

65,351

66,606

67,668

Total primary government expenses

$

6,065,113

$

6,211,660

$

6,077,978

$

6,100,771

Program revenues

Governmental activities:

Charges for services:

General government

$

352,124

$

567,663

$

643,070

$

355,391

Public works

315,230

296,974

418,498

321,544

Parks and recreation services

-

608

14,337

73,501

Community and economic development

137,795

54,013

25,990

100,612

Public safety

36,899

14,631

13,862

49,326

Operating grants and contributions

587,384

683,492

157,397

836,833

Capital grants and contributions

-

-

-

22,200

Total governmental activities program revenues

1,429,432

1,617,381

1,273,154

1,759,407

Business-type activities:

Charges for services:

Community gym

-

-

-

-

Endeavor hall

14,860

19,545

25,818

27,253

Operating grants and contributions

-

-

-

-

Total business-type program revenues

14,860

19,545

25,818

27,253

Net revenues (expenses)

Governmental activities

$

(4,575,564)

$

(4,528,928)

$

(4,738,218)

$

(4,273,696)

Business-type activities

(45,257)

(45,806)

(40,788)

(40,415)

Total primary government net expense

$

(4,620,821)

$

(4,574,734)

$

(4,779,006)

$

(4,314,111)

General revenues and other changes in net position

Governmental activities:

Taxes:

Property taxes

$

1,691,803

$

1,862,734

$

2,302,278

$

2,256,780

Special parcel taxes

1,093,213

1,122,349

1,155,141

1,185,651

Sales and use taxes

353,525

370,330

397,544

372,705

Business license taxes

-

-

-

133,943

Other taxes

802,651

865,752

1,339,537

-

Franchise fees

-

-

-

516,607

Payments in lieu of taxes

-

-

-

154,852

Investment income

80,622

64,319

82,909

295,904

Miscellaneous

139,161

175,082

91,230

58,694

Gain/(loss) on sale of assets

(7,817)

-

624

792

Transfers

250,456

(688,709)

88,793

-

Total governmental activities

4,403,614

3,771,857

5,458,056

4,975,928

Business type activities:

Investment income/(loss)

-

393

175

-

Miscellaneous

-

-

4,316

-

Transfers

-

-

(88,793)

-

Total business-type activities

-

393

(84,302)

-

Extraordinary and Special Items

Governmental activities:

Extraordinary gain/(loss)

-

-

(200,000)

(230,786)

Business-type activities:

Special item gain/(loss)

-

-

93,489

-

Total primary government changes in net position

Governmental activities

(171,950)

(757,071)

519,838

471,446

Business-type activities

(45,257)

(45,413)

(31,601)

(40,415)

Total primary government

$

(217,207)

$

(802,484)

$

488,237

$

431,031

Source: City of Clayton Finance Department.

145

City of Clayton

Statistical Section

Changes in Net Position - Last Ten Fiscal Years

(Accrual Basis of Accounting)

Fiscal Year

2017

2018

2019

2020

2021

2022

$

1,174,069

$

1,305,562

$

1,457,326

$

2,781,523

$

1,796,454

$

2,629,048

2,221,835

2,509,147

2,825,969

1,988,766

2,909,710

2,509,096

676,790

667,687

718,267

452,535

592,433

729,729

287,775

329,418

367,682

296,372

357,133

356,450

2,075,082

2,538,912

2,536,880

2,521,690

2,980,000

2,736,817

-

-

-

-

-

-

6,435,551

7,350,726

7,906,124

8,040,886

8,635,730

8,961,140

-

-

-

-

-

-

67,393

76,901

58,455

63,631

73,117

60,694

67,393

76,901

58,455

63,631

73,117

60,694

$

6,502,944

$

7,427,627

$

7,964,579

$

8,104,517

$

8,708,847

$

9,021,834

$

349,220

$

397,668

$

397,436

$

438,906

$

430,894

$

437,626

324,308

355,625

356,347

338,877

328,731

331,218

70,394

66,868

71,681

43,635

17,622

42,903

113,336

127,487

96,596

113,600

133,404

142,299

52,497

44,545

41,195

65,674

51,259

48,292

813,168

900,239

825,018

1,024,732

893,718

2,755,382

885,398

526,452

570,049

559,220

42,363

120,774

2,608,321

2,418,884

2,358,322

2,584,644

1,897,991

3,878,494

-

-

-

-

-

-

22,251

27,890

24,642

24,702

(1,442)

16,847

-

-

-

-

-

-

22,251

27,890

24,642

24,702

(1,442)

16,847

$

(3,827,230)

$

(4,931,842)

$

(5,547,802)

$

(5,456,242)

$

(6,737,739)

$

(5,082,646)

(45,142)

(49,011)

(33,813)

(38,929)

(74,559)

(43,847)

$

(3,872,372)

$

(4,980,853)

$

(5,581,615)

$

(5,495,171)

$

(6,812,298)

$

(5,126,493)

$

2,339,221

$

2,345,067

$

2,463,898

$

2,587,812

$

2,722,906

$

2,846,766

1,220,427

1,254,911

1,256,011

1,295,034

1,309,373

1,348,657

455,387

436,560

483,741

512,868

510,029

563,908

135,866

154,397

175,153

140,620

90,872

162,881

-

-

-

-

-

-

541,138

547,765

523,129

565,893

567,350

587,740

157,949

161,108

164,331

167,677

171,029

174,443

119,201

287,595

255,272

684,244

508,256

(281,502)

31,216

23,118

39,211

40,516

38,972

54,512

1,624

(893)

30,924

5,760

1,741

6,958

-

-

-

-

-

-

5,002,029

5,209,628

5,391,670

6,000,424

5,920,528

5,464,363

-

-

4

121

(379)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4

121

(379)

-

-

-

-

-

-

-

-

-

-

-

-

-

1,174,799

277,786

(156,132)

544,182

(817,211)

381,717

(45,142)

(49,011)

(33,809)

(38,808)

(74,938)

(43,847)

$

1,129,657

$

228,775

$

(189,941)

$

505,374

$

(892,149)

$

337,870

146

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year Ending June 30

2013

2014

2015

2016

General fund:

Nonspendable

$

-

$

1,242,346

$

1,029,377

$

308,064

Restricted

-

-

-

-

Committed

-

-

-

-

Assigned

182,671

34,542

-

278,853

Unassigned

5,199,914

3,871,849

4,509,255

5,031,142

Total general fund

5,382,585

5,148,737

5,538,632

5,618,059

All other governmental funds:

Nonspendable

-

-

-

3,633,951

Restricted

-

1,399,064

1,303,081

2,150,476

Committed

5,071,942

829,421

721,112

667,134

Assigned

-

2,354,314

3,309,135

2,684,533

Unassigned

(425,380)

(2,550)

(2,550)

(2,550)

Total other governmental funds

4,646,562

4,580,249

5,330,778

9,133,544

Total governmental funds

$

10,029,147

$

9,728,986

$

10,869,410

$

14,751,603

Source: City of Clayton Finance Department.

147

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

$

72,518

$

81,790

$

320,232

$

100,163

$

120,623

$

173,471

-

-

-

-

-

-

-

-

-

-

177,496

495,019

415,239

281,930

102,228

409,482

-

-

5,429,524

5,302,751

5,337,685

5,654,925

5,810,862

5,744,867

5,917,281

5,666,471

5,760,145

6,164,570

6,108,981

6,413,357

3,696,238

-

-

-

-

-

2,122,471

6,293,306

6,403,413

6,452,671

7,283,999

6,719,595

494,241

571,915

647,611

669,841

643,461

709,802

3,026,942

3,542,680

2,744,642

3,167,804

3,261,239

3,330,153

(2,550)

(2,550)

(223,171)

(23,566)

-

-

9,337,342

10,405,351

9,572,495

10,266,750

11,188,699

10,759,550

$ 15,254,623

$ 16,071,822

$ 15,332,640

$ 16,431,320

$

17,297,680

$

17,172,907

148

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year

2013

2014

2015

2016

Revenues

Property taxes

$

1,691,803

$

1,862,734

$

2,302,278

$

2,256,780

Program income

10,546

10,668

10,063

81,400

Special parcel taxes and assessments

1,232,280

1,260,823

1,287,748

1,437,156

Sales and use taxes

353,525

370,330

397,544

372,705

Business license taxes and fees

-

-

-

133,943

Permits, licenses and fees

402,661

290,598

306,545

194,261

Fines, forfeitures and penalties

93,328

78,173

72,635

84,270

Intergovernmental

836,041

967,729

1,066,757

964,539

Motor vehicle in-lieu fees

-

4,703

4,590

4,554

Other in-lieu fees

145,921

148,839

151,816

154,852

Franchise fees

479,765

504,867

501,597

516,607

Service charges

125,387

338,626

366,080

342,308

Use of money and property

80,579

62,642

81,408

290,966

Other revenue

138,528

175,538

91,131

48,517

Total revenues

5,590,364

6,076,270

6,640,192

6,882,858

Expenditures

Current

General government

957,680

1,118,026

1,018,852

1,068,970

Public works

1,502,599

1,293,402

1,342,373

1,237,683

Parks and recreation services

356,445

352,498

349,862

375,554

Community and economic development

446,259

410,413

410,972

379,162

Public safety

1,867,432

1,950,034

2,005,607

2,281,621

Capital outlay

2,370,825

393,505

260,895

1,275,563

Debt service

Principal

-

-

-

-

Interest and fiscal charges

-

-

-

-

Total expenditures

7,501,240

5,517,878

5,388,561

6,618,553

Revenues over (under) expenditures

(1,910,876)

558,392

1,251,631

264,305

Other financing sources (uses)

Unrealized gains (losses)

-

-

-

-

Transfers in

2,221,820

524,187

600,458

1,026,538

Transfers out

(1,971,364)

(603,341)

(511,665)

(1,177,781)

Total other financing sources (uses)

250,456

(79,154)

88,793

(151,243)

Revenues and other financing sources over (under)

expenditures and other financing uses

(1,660,420)

479,238

1,340,424

113,062

Special and extraordinary items

Special item gain (loss)

-

(90,690)

-

Extraordinary gain (loss)

-

-

(200,000)

(230,786)

Total special and extraordinary items

-

(90,690)

(200,000)

(230,786)

Change in fund balances

$

(1,660,420)

$

388,548

$

1,140,424

$

(117,724)

Ratio of Total Debt Service Expenditures to

Noncapital Expenditures

0.00

0.00

0.00

0.00

Source: City of Clayton Finance Department

149

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year

2017

2018

2019

2020

2021

2022

$

2,339,221

$

2,345,067

$

2,463,898

$

2,463,898

$

2,722,905

$

2,846,766

86,400

91,400

146,400

146,400

106,400

111,400

1,465,905

1,522,187

1,546,399

1,546,399

1,606,706

1,647,112

455,387

436,560

483,741

483,741

510,029

563,908

135,866

154,397

175,153

175,153

90,872

162,881

209,026

356,052

212,242

212,242

172,297

254,352

92,662

110,787

82,375

82,375

118,766

151,409

1,706,688

1,178,659

1,312,528

1,312,528

911,240

2,772,298

-

-

-

-

-

-

157,949

161,108

164,331

164,331

171,029

174,443

541,138

547,765

523,129

523,129

567,350

587,740

311,796

329,164

325,078

325,078

297,393

305,645

118,210

274,244

385,696

385,696

132,791

(324,916)

40,186

23,168

35,723

35,723

30,657

41,492

7,660,434

7,530,558

7,856,693

7,856,693

7,438,435

9,294,530

1,194,606

1,183,609

1,317,973

1,317,973

1,547,319

2,697,067

1,519,992

1,592,903

1,621,629

1,621,629

1,908,291

2,141,455

458,294

433,764

477,266

477,266

349,854

477,400

309,048

317,284

352,163

352,163

318,173

299,175

2,265,845

2,363,298

2,365,339

2,365,339

2,605,103

2,814,860

1,409,599

654,531

2,146,778

2,146,778

213,610

1,102,349

-

-

-

-

-

-

-

-

-

-

-

-

7,157,384

6,545,389

8,281,148

8,281,148

6,942,350

9,532,306

503,050

985,169

(424,455)

(424,455)

496,085

(237,776)

-

-

(214,727)

(214,727)

370,275

58,091

497,960

481,974

1,261,171

1,261,171

494,175

3,251,504

(497,960)

(649,974)

(1,361,171)

(1,361,171)

(494,175)

(3,251,504)

-

(168,000)

(314,727)

(314,727)

370,275

58,091

503,050

817,169

(739,182)

(739,182)

866,360

(179,685)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

503,050

$

817,169

$

(739,182)

$

(739,182)

$

866,360

$

(179,685)

0.00

0.00

0.00

0.00

0.00

0.00

150

City of Clayton

Statistical Section

Property Tax Levies and Collections

Last Ten Fiscal Years

Property Tax Collections

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Fiscal Years

Collected within the Fiscal Year

of the Levy

Total Collections to Date

Fiscal Year

Total Tax Levy for

Percentage of

Percentage of

Ended June 30

Fiscal Year 1

Amount

Levy

Amount

Levy

2013

1,862,734

1,862,734

100%

1,862,734

100%

2014

2,302,278

2,302,278

100%

2,302,278

100%

2015

2,256,780

2,256,780

100%

2,256,780

100%

2016

2,339,221

2,339,221

100%

2,339,221

100%

2017

3,599,978

3,599,978

100%

3,599,978

100%

2018

3,719,909

3,719,909

100%

3,719,909

100%

2019

2,587,812

2,587,812

100%

2,587,812

100%

2020

4,170,045

4,170,045

100%

4,170,045

100%

2021

4,329,611

4,329,611

100%

4,329,611

100%

2022

4,605,278

4,605,278

100%

4,605,278

100%

Source: City of Clayton Finance Department

  1. Property tax levies above include secured and unsecured general ad valorem property taxes, restricted local special parcel taxes, and property taxes pertaining to the Redevelopment Property Tax Trust Fund.
  2. The City is enrolled in the "Teeter" Plan, where the County remits the entire amount levied and handles all delinquencies, retaining the interest and penalties.

151

City of Clayton

Statistical Section

Assessed Value and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years

Net Taxable Assessed Value

Millions

$2,500

$2,000

$1,500

$1,000

$500

$‐

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Years

Fiscal Year

SBE

Net Total Assessed

Total Direct

Ended June 30

Secured

Unsecured

Nonunitary

Valuation

Tax Rate 2

2013

1,592,441,490

12,107,626

-

1,604,549,116

34.145%

2014

1,724,741,279

12,046,811

-

1,736,788,090

6.992%

2015

1,855,952,809

10,423,772

-

1,866,376,581

6.587%

2016

1,966,021,862

24,268,730

-

1,990,290,592

6.627%

2017

2,052,672,378

24,551,781

-

2,077,224,159

6.642%

2018

2,138,664,468

22,857,474

-

2,161,521,942

6.650%

2019

2,238,046,407

24,573,625

-

2,262,620,032

6.667%

2020

2,335,781,999

28,167,199

-

2,363,949,198

6.684%

2021

2,419,252,507

28,191,208

-

2,447,443,715

6.697%

2022

2,503,001,127

31,341,543

2,534,342,670

6.697%

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

  1. In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
  2. City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.

152

City of Clayton

Statistical Section

Taxable Assessed Value By Source

Last Ten Fiscal Years

Fiscal Year Ending June 30

Category

2013

2014

2015

2016

Residential ¹

$

1,525,145,282

$

1,664,638,727

$

1,797,596,765

$

1,904,368,929

Commercial

42,498,296

39,271,189

38,942,508

41,544,210

Dry Farm

Gov't Owned

2,509,634

2,521,025

2,571,392

Institutional

2,460,428

Irrigated

126,707

129,240

Miscellaneous

764,183

197,555

198,449

202,412

Recreational

5,364,139

5,364,585

5,364,688

5,365,145

Vacant

16,082,455

12,630,349

11,329,374

11,969,774

Unsecured

12,107,626

12,046,811

10,423,772

24,268,730

Exempt ²

(24,547,599)

(25,038,500)

(26,156,667)

(26,679,230)

Unknown

-

-

-

-

Totals

$

1,604,549,116

$

1,736,788,090

$

1,866,376,581

$

1,990,290,592

Total Direct Rate

0.34145

0.06992

0.06587

0.06627

Taxable Assessed Value By Source

Millions

$2,500

$2,400

$2,300

$2,200

$2,100

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

2013

2014

2015

2016

2017

2018

2019

2020

2022

Fiscal Year Ending June 30

Category

Residential ¹

Commercial

Dry Farm

Gov't Owned

Institutional

Irrigated

Miscellaneous

Recreational

Vacant

Unsecured

Exempt ²

Unknown

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

  1. In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
  2. Exempt values are not included in total.
  3. California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1.0% and allocates a portion of that amount by an annual calculation to all the taxing entities within a tax rate area. The City of Clayton

153

City of Clayton

Statistical Section

Taxable Assessed Value By Source

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

$

1,988,952,192

$

2,067,562,369

$

2,165,479,800

$

2,266,477,116

$

2,348,456,415

$

2,430,095,644

41,858,935

47,590,673

47,779,713

48,208,120

49,037,518

50,373,722

11,134,894

11,399,590

11,865,579

12,060,444

2,610,603

2,662,812

3,253,330

2,729,354

2,783,939

2,812,779

205,496

209,603

129,549

140,719

143,532

145,018

6,302,648

7,403,121

7,402,753

4,957,742

5,058,784

5,055,770

12,742,504

13,235,890

2,866,368

1,869,358

1,906,740

2,457,750

24,551,781

22,857,474

24,573,625

28,167,199

28,191,208

31,341,543

(27,086,036)

(27,627,706)

(28,243,119)

(28,807,933)

(29,384,046)

(29,688,415)

-

-

-

-

-

-

$

2,077,224,159

$

2,161,521,942

$

2,262,620,032

$

2,363,949,198

$

2,447,443,715

$

2,534,342,670

0.06642

0.06650

0.06667

0.06684

0.06697

0.06711

154

City of Clayton

Statistical Section

Property Tax Rates - Direct and Overlapping Governments

Last Ten Fiscal Years (Rate per $100 of Assessed Value)

Fiscal Year Ending June 30

2012

2013

2014

2015

City Direct Rates:

City of Clayton General Fund 1

0.06628

0.06628

0.06628

0.06628

Clayton Light Maintenance District No. 1 2

0.01039

0.01039

0.01039

0.01039

Direct and Overlapping Rates:

Basic Levy 3

1.00000

1.00000

1.00000

1.00000

Bay Area Rapid Transit (BART) Bond

0.00410

0.00430

0.00750

0.00450

Contra Costa Community College Bond

0.01440

0.00870

0.01330

0.02520

Contra Costa Water Land Levy

0.00510

0.00450

0.00420

0.00370

East Bay Regional Park Bond

0.00710

0.00510

0.00780

0.00850

Mt. Diablo School Bond

0.06120

0.08710

0.07400

0.08530

Total Direct and Overlapping Rates

1.09190

1.10970

1.10680

1.12720

City's Share of 1% Levy Per Prop 13 ³

0.06628

0.06628

0.06628

0.06628

Redevelopment Rate ⁴

1.01220

-

-

-

Total Direct Rate ⁵

0.34460

0.34145

0.06992

0.06587

Source: HdL, Coren & Cone, Contra Costa County Assessor 2010-11 to 2019-20 tax rate table.

  1. City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.
  2. City's share of 1.0% basic levy is based on the City's share of the Light Maintenance District No. 1 tax rate area with the largest net taxable value within the City. Tax Rate Area 13-002 is represented here for this report.
  3. In 1978, California voters passed Proposition 13 which caps the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of voter approved bonds from various agencies.

155

City of Clayton

Statistical Section

Property Tax Rates - Direct and Overlapping Governments

Last Ten Fiscal Years (Rate per $100 of Assessed Value)

Fiscal Year Ending June 30

2016

2017

2018

2019

2020

2021

2022

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.01039

0.01039

0.01039

0.01039

0.01039

0.01039

0.01039

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

0.00260

0.00800

0.00840

0.00700

0.01200

0.01390

0.00600

0.02200

0.01200

0.01140

0.01100

0.01880

0.01610

0.01760

0.00350

0.00320

0.00300

0.00280

0.00260

0.00250

0.00230

0.00670

0.00320

0.00210

0.00210

0.00940

0.00140

0.00200

0.08120

0.07640

0.07900

0.09250

0.09080

0.09090

0.08980

1.11600

1.10280

1.10390

1.11540

1.13360

1.12480

1.11770

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

-

-

-

-

-

-

-

0.06627

0.06642

0.06650

0.06667

0.06684

0.06697

0.06697

156

City of Clayton

Statistical Section

Principal Property Tax Payers

Current Year and Nine Years Ago

Fiscal Year Ending June 30, 2012

Property Owner

Primary Use, Primary Agency

Secured

Parcels

Value

% of Net AV

1) Safeway Stores, Inc ¹

Commercial, Successor Agency

1

$

10,850,709

0.68%

2) Clayton Station Shopping Center ¹

Commercial, Successor Agency

4

9,416,419

0.59%

3)

Albert D. Jr. & Sandra Seeno Trust

Vacant, Clayton General Fund

1

6,100,000

0.38%

4) NGP Realty Sub LP

Recreational, Successor Agency

17

5,362,963

0.34%

5)

Diamond Terrace Investors

Commercial, Successor Agency

1

5,295,820

0.33%

6)

Endashiian LLC

Commercial, Successor Agency

1

3,332,044

0.21%

7)

Comcast

Unsecured, Successor Agency

-

-

0.00%

8) Village Oaks LLC

Commercial, Successor Agency

2

2,748,766

0.17%

9) Ocean West Nevada Corporation

Commercial, Successor Agency

1

2,336,664

0.15%

10) Joe Leggallet Trust

Institutional, Successor Agency

1

2,128,538

0.13%

Top Ten Total

29

$

47,571,923

2.99%

City Total

$

1,592,441,490

Fiscal Year Ending June 30, 2022

Property Owner

Primary Use, Primary Agency

Secured

Parcels

Value

% of Net AV

1)

Comcast

Unsecured, Clayton General Fund

-

$

-

0.00%

2) Safeway Stores, Inc ¹

Commercial, Successor Agency

1

11,685,859

0.47%

3) Clayton Station Shopping Center ¹

Commercial, Successor Agency

4

10,926,808

0.44%

4)

Albert D. Jr. & Sandra Seeno Trust

Dry Farm, Clayton General Fund

1

8,660,000

0.35%

5) 1026 Oak LLC

Commercial, Successor Agency

1

5,140,133

0.21%

6)

William Patrick Jordan Trust

Residential, Successor Agency

6

4,724,947

0.19%

7)

Elaine HOM

Commercial, Successor Agency

1

4,674,799

0.19%

8)

Endashiian LLC

Commercial, Successor Agency

1

3,866,506

0.15%

9) Village Oaks LLC

Commercial, Successor Agency

2

3,189,663

0.13%

10) Empire Acres LLC

Residential, Successor Agency

5

2,716,014

0.11%

Top Ten Total

22

$

55,584,729

2.22%

City Total

$

2,503,001,127

Source: HdL, Coren & Cone, Contra Costa County Assessor 2011-12 & 2021-22 Combined Tax Rolls & the SBE Non-Unitary Tax Roll

  1. Pending appeals on parcels

157

City of Clayton

Statistical Section

Principal Property Tax Payers

Current Year and Nine Years Ago

Fiscal Year Ending June 30, 2012

Unsecured

Combined

Parcels

Value

% of Net AV

Value

% of Net AV

-

$

-

0.00%

$

10,850,709

0.68%

-

-

0.00%

9,416,419

0.59%

-

-

0.00%

6,100,000

0.38%

-

-

0.00%

5,362,963

0.33%

-

-

0.00%

5,295,820

0.33%

-

-

0.00%

3,332,044

0.21%

4

2,937,441

24.26%

2,937,441

0.18%

-

-

0.00%

2,748,766

0.17%

-

-

0.00%

2,336,664

0.15%

-

-

0.00%

2,128,538

0.13%

4

$

2,937,441

24.26%

$

50,509,364

3.15%

$

12,107,626

$

1,604,549,116

Fiscal Year Ending June 30, 2022

Unsecured

Combined

Parcels

Value

% of Net AV

Value

% of Net AV

6

$

22,962,583

73.27%

$

22,962,583

0.91%

-

-

0.00%

11,685,859

0.46%

-

-

0.00%

10,926,808

0.43%

-

-

0.00%

8,660,000

0.34%

-

-

0.00%

5,140,133

0.20%

-

-

0.00%

4,724,947

0.19%

-

-

0.00%

4,674,799

0.18%

-

-

0.00%

3,866,506

0.15%

-

-

0.00%

3,189,663

0.13%

-

-

0.00%

2,716,014

0.11%

6

$

22,962,583

73.27%

$

78,547,312

3.10%

$

31,341,543

$

2,534,342,670

158

City of Clayton

Statistical Section

Ratios of Debt Outstanding

Last Ten Fiscal Years

Total Outstanding Debt

1

1

1

1

1

1

0

0

0

0

-

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year

Fiscal Year

Tax Allocation

Ended

Percentage of Total

Percent of

June 30

Bonds 1

Assessed Value

Personal Income

Per Capita

2013

-

0.000%

0.000%

-

2014

-

0.000%

0.000%

-

2015

-

0.000%

0.000%

-

2016

-

0.000%

0.000%

-

2017

-

0.000%

0.000%

-

2018

-

0.000%

0.000%

-

2019

-

0.000%

0.000%

-

2020

-

0.000%

0.000%

-

2021

-

0.000%

0.000%

-

2022

-

0.000%

0.000%

-

Source: City of Clayton Finance Department.

  1. The balance of Tax Allocation Bonds was transferred to the Redevelopment Successor Agency as of February 1, 2012.

159

City of Clayton

Statistical Section

Computation of Direct and Overlapping Debt

June 30, 2022

Percent

Gross Bonded Debt

Applicable

Net

Overlapping Debt

Balance

to City

Bonded Debt

100300

County General

$

393,729,873

1.081

$

3,622,597

202000

Contra Costa Fire

26,670

2.343

623,330

400800

San Francisco Bay Area Rapid Transit District

660,703,057

1.081

7,150,426

402700

East Bay Regional Park District

77,146,356

1.081

834,913

759500

Mt. Diablo 2002 Bond

244,095,000

5.282

12,929,512

759600

Mt. Diablo 2010 Bond

269,216,615

5.282

14,260,183

759708

Mt. Diablo 2018 Bond

14,538,000

5.282

770,066

792100

Contra Costa Community College 2002 Bond

311,230,151

1.085

3,379,442

792200

Contra Costa Community College 2006 Bond

354,509,849

1.085

3,849,388

792300

Contra Costa Community College 2014 Bond

271,130,000

1.085

2,944,021

Total Overlapping Debt

$

50,363,878

2021-22 Assessed Valuation: $1,693,258,542 after deducting $841,084,128 incremental value.

Debt to Assessed Valuation Ratios:

Direct Debt

0.00%

Overlapping Debt

2.97%

Total Debt

2.97%

Source: HdL, Coren & Cone, Contra Costa County Assessor & Auditor combined 2020-21 lien date tax rolls.

This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation.

Overlapping governments are those that coincide at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

160

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

Fiscal Year Ending

2013

2014

2015

2016

Assessed valuation

$

1,580,001,517

$

1,711,749,590

$

1,840,219,914

$

1,963,611,362

Add back exempted real property

24,547,599

25,038,500

26,156,667

26,679,230

Total assessed valuation

$

1,604,549,116

$

1,736,788,090

$

1,866,376,581

$

1,990,290,592

Debt limit percentage 1

3.75%

3.75%

3.75%

3.75%

Debt limit

$

60,170,592

$

65,129,553

$

69,989,122

$

74,635,897

Total net debt applicable to limit

$

-

$

-

$

-

$

-

Legal Debt margin

$

60,170,592

$

65,129,553

$

69,989,122

$

74,635,897

Total debt applicable to the limit as a

percentage of debt limit

0.00%

0.00%

0.00%

0.00%

Source: City of Clayton Finance Department.

  1. The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the

161

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

Fiscal Year Ending

2017

2018

2019

2020

2021

2022

$

2,050,138,123

$

2,133,894,236

$

2,234,376,913

$

2,335,141,265

$

2,418,059,669

$

2,504,654,255

27,086,036

27,627,706

28,243,119

28,807,933

29,384,046

29,688,415

$

2,077,224,159

$

2,161,521,942

$

2,262,620,032

$

2,363,949,198

$

2,447,443,715

$

2,534,342,670

3.75%

3.75%

3.75%

3.75%

3.75%

3.75%

$

77,895,906

$

81,057,073

$

84,848,251

$

88,648,095

$

91,779,139

$

95,037,850

$

-

$

-

$

-

$

-

$

-

$

-

$

77,895,906

$

81,057,073

$

84,848,251

$

88,648,095

$

91,779,139

$

95,037,850

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

162

City of Clayton

Statistical Section

Bonded Debt Pledged Revenue Coverage

Last Ten Fiscal Years

Tax Allocation Bonds

Fiscal Year

Debt Service 1

Ended

June 30

Tax Increment

Principal

Interest

Coverage Ratio

2013

-

-

-

-

2014

-

-

-

-

2015

-

-

-

-

2016

-

-

-

-

2017

-

-

-

-

2018

-

-

-

-

2019

-

-

-

-

2020

-

-

-

-

2021

-

-

-

-

2022

-

-

-

-

Source: City of Clayton Finance Department.

  1. The balance of the tax allocation bonds was transferred to the Successor Agency as of February 1, 2012. Principal and interest payments are recorded through January 31, 2012.

163

City of Clayton

Statistical Section

Demographic and Economic Statistics

Last Ten Fiscal Years

City Population

11,800

11,600

Population

11,400

11,200

11,000

10,800

10,600

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year ending December 31

Contra Costa

City

City

Personal Income

Per Capita Personal

Unemployment

Population %

Calendar Year

Population

(in Thousands)

Income

Rate

County Population 1

of County

2011

10,996

577,972

52,562

2.5%

1,056,064

1.04%

2012

11,093

562,914

50,745

1.7%

1,065,117

1.04%

2013

11,200

567,885

50,704

1.4%

1,074,702

1.04%

2014

11,209

581,063

51,839

5.4%

1,087,008

1.03%

2015

11,209

620,092

55,320

4.4%

1,102,871

1.02%

2016

11,284

628,783

55,723

3.9%

1,123,429

1.00%

2017

11,431

656,122

57,398

3.1%

1,149,363

0.99%

2018

11,653

694,323

59,583

1.8%

1,155,879

1.01%

2019

11,337

776,778

68,517

1.4%

1,153,561

0.98%

2020

11,268

817,954

72,590

5.3%

1,165,927

0.97%

2021

10,863

761,054

70,059

6.1%

1,156,555

0.94%

  1. Source: California State Department of Finance Price and Population Information letter to local governments. Source of other information shown: HdL, Coren & Cone, Demographic and Economic Statistics Report.

164

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

Function:

2013

2014

2015

2016

General Government:

Management Services

2.00

2.00

2.00

2.00

Finance

2.30

2.30

2.30

2.30

City Clerk/Human Resources

1.00

1.00

1.00

1.00

Public Safety:

5.30

5.30

5.30

5.30

Sworn Officers

11.00

11.00

11.00

11.00

Non-Sworn/Administration

2.00

2.00

2.00

2.00

13.00

13.00

13.00

13.00

Public Works 1

3.50

3.40

3.10

3.50

Parks & Recreation 1

1.50

1.60

1.90

1.50

Community & Economic

Development:

Planning Services

1.60

1.60

1.60

1.60

Code Enforcement

0.30

0.30

0.30

0.30

1.90

1.90

1.90

1.90

Totals

25.20

25.20

25.20

25.20

Source: City of Clayton Finance Department, Adopted Budgets.

  1. Full-time equivalent figure for maintenance personnel allocated to

bl k d k &

165

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017 2018 2019 2020 2021 2022

2.00

2.00

2.00

2.00

2.00

2.00

2.30

2.30

2.30

2.30

2.30

3.30

1.00

1.00

1.00

1.00

1.00

1.00

5.30

5.30

5.30

5.30

5.30

6.30

11.00

11.00

11.00

11.00

11.00

11.00

2.00

2.00

2.00

2.00

2.00

2.00

13.00

13.00

13.00

13.00

13.00

13.00

4.80

4.50

4.50

4.50

4.50

4.50

1.20

1.50

1.50

1.50

1.50

1.50

1.60

1.60

1.60

1.60

1.60

1.80

0.30

0.30

0.30

0.30

0.30

0.30

1.90

1.90

1.90

1.90

1.90

2.10

26.20

26.20

26.20

26.20

26.20

27.40

166

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

Fiscal Year Ending

Function:

2013

2014

2015

2016

Police:

Police calls for service

5,962

5,858

7,303

6,730

Parking violations

125

40

53

53

Traffic citations

585

664

653

518

Physical arrests

201

137

200

219

Public Works:

Storm drains inspected

*

*

*

500

Trees trimmed

*

*

*

70

Park maintenance (acres)

*

*

*

19.07

Street signs maintained

*

*

*

350

Traffic signals maintained

*

*

*

13

Streetlights maintained

*

*

*

1,200

Parks and Recreation Services:

Endeavor Hall rentals (days)

*

*

*

135

Hoyer Hall rentals

*

*

*

33

Ballfields (hours rented)

*

*

*

1,512

Community and Economic

Development:

Planning permits issued

*

*

*

161

Code enforcement cases closed

*

*

*

61

Building permits issued

201

376

430

386

General Government:

Business licenses issued

*

547

707

645

Home occupation applications

*

*

20

Number of recruitments

*

*

*

5

Source: Clayton Finance Department, Contra Costa County Building Department, Clayton Planning Department, Clayton Police Department, Clayton Maintenance Department.

167

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

Fiscal Year Ending

2017

2018

2019

2020

2021

2022

6,650

7,497

7,545

8,419

6,164

5,804

151

132

146

572

390

435

494

506

386

289

272

327

150

169

169

94

67

180

500

500

56

500

500

500

70

70

316

412

385

1350

19.07

19.07

19.07

19.07

19.07

19.07

350

350

17

212

160

210

13

13

7

13

13

13

1,200

1,200

89

1,196

1,200

111

144

138

139

86

2

37

53

39

92

33

0

24

1,170

1,047

1,225

386

922

1137

107

182

187

36

87

51

93

43

79

47

101

403

475

424

232

401

777

840

741

768

646

708

16

28

22

14

18

26

3

6

3

5

6

13

168

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

Function:

2013

2014

2015

2016

Public Safety:

Automated license plate readers

0

0

0

0

Police stations

1

1

1

1

Patrol units

*

*

8

10

Situational awareness traffic cameras

0

0

0

0

Trailers/Trucks

*

*

2

2

Public Works:

City owned parking lots

6

6

6

6

Community facilities

*

*

3

3

Curb lane miles

*

*

*

82

Manholes

*

*

*

162

Miles of storm drains

*

*

*

32.479

Number of catch basins

*

*

*

968

Number of street islands/medians

*

*

*

50

Miles of "v" ditches

*

*

*

15

Parking meters

0

0

0

0

Street signs

*

*

*

2,000

Streetlights (City owned)

*

*

*

500

Tractors/Trailers

*

*

11

12

Traffic signals (intersections)

*

*

13

13

Work trucks

*

*

8

8

Parks and Recreation Services:

Acres of city parks

19.07

19.07

19.07

19.07

Acres of landscaped area (excl. parks)

46

46

46

46

Acres of open space

515.51

515.51

515.51

515.51

Acres of parks and irrigation

50

50

50

50

Miles of creekside trails

7

7

7

7

Miles of open space trails

20

20

20

20

Number of city parks

7

7

7

7

Number of city trees

3,000

3,000

3,000

3,000

Number of pedestrian bridges

9

9

9

9

Number of children playgrounds

4

4

4

4

Number of playfields

4

4

4

4

169

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

0

6

6

6

6

6

1

1

1

1

1

1

11

10

10

10

10

10

0

4

4

4

4

4

2

2

2

2

2

2

6

6

6

6

6

6

3

3

3

3

3

3

82

82

82

82

82

82

162

162

162

162

162

162

32.479

32.479

32.479

32.479

32.479

32.479

968

968

968

968

968

968

50

50

50

50

50

50

15

15

15

15

15

15

0

0

0

0

0

0

2,000

2,000

2,015

2015

2015

2015

500

500

500

500

500

500

13

13

14

14

14

14

13

13

13

13

13

13

8

8

7

8

8

8

19.07

19.07

19.07

19.07

19.07

19.07

46

46

46

46

46

46

515.51

515.51

515.51

515.51

515.51

515.51

50

50

50

50

50

50

7

7

7

7

7

7

20

20

20

20

20

20

7

7

7

7

7

7

3,000

3,000

3,000

3000

3000

3000

9

9

9

9

9

9

4

4

4

4

4

4

4

4

4

4

4

4

170

General Information:

Date of Incorporation

March 18, 1964

Form of Government

Council-Manager

Number of authorized City employees

27

Population:

Population

11,070

Median age

46.3

Median household income

$153,607

Registered voters

8,477

Area in square miles

4.3

Miles of Streets:

Lane miles

44.9

Pavement condition index

79/100 ["Very Good" rating]

Fire Protection (CalFire Services Clayton)

Number of stations

1

Police Protection

Number of stations

1

Number of patrol vehicles

10

Number of sworn personnel

11

Education

Elementary Schools:

1

Mt Diablo Elementary

Middle Schools:

1

Diablo View Middle School

Library (Contracted with Contra Costa County)

Number of libraries

1

Parks & Community Facilities

Park sites

7

Park acreage

19.07

Open space acreage

515.51

Open space trail miles

20

Creekside trail miles

7

Endeavor Hall

1

Hoyer Hall (in the library)

1

City Hall Conference Room

1

Source: City of Clayton Finance Department, Contra Costa County Library, City of Clayton City Clerk, HdL "Demographic and Economics Statistics" Report for calendar year 2018, US Census, DataUSA.

171

City of Clayton, California Annual Financial Report For the Year Ended June 30, 2022

INTRODUCTORY SECTION

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

Page

INTRODUCTORY SECTION

1

Table of Contents……………………………………………………………………………….

Letter of Transmittal……………………………………………………………………………

4

Mission Statement……………………………………………………………………………...

9

Organizational Chart…………………………………………………………………………...

10

Principal Officers, Department Heads and Advisory Bodies

11

Regional Map of Clayton and Nearby Cities

12

FINANCIAL SECTION

Independent Auditors’ Report……………………………. . …………………………………

17

Management's Discussion and Analysis………………………. . . …………………………. .

21

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Position………………………………………………. . ……………

33

Statement of Activities and Changes in Net Position………………………. . …….

34

Governmental Fund Financial Statements:

Balance Sheet……………………………………………………………. . …………….

39

Reconciliation of Governmental Funds Balance Sheet to the Statement of

Net Position…………………………………………………………………………

42

Statement of Revenues, Expenditures and Changes in Fund Balances…………. .

43

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and

Changes in Fund Balances to the Statement of Activities and Changes in Net

Position…. . . ……………………………………. . …………. . .

45

Proprietary Fund Financial Statements:

Statement of Net Position………………………………………. . ……………………

47

Statement of Revenues, Expenses and Changes in Net Position…………. . . ……. .

48

Statement of Cash Flows……………………………………………………. . ……….

49

Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position…………………………………. . ……………. .

51

Statement of Changes in Fiduciary Net Position……………………. . …………….

52

Notes to Basic Financial Statements…………………………………. . ……………………. .

55

1

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

FINANCIAL SECTION (Continued)

Required Supplementary Information

Budgetary Comparison Schedules

General Fund……………………………………………………. . . ……………………

103

Landscape Maintenance District ……………. …………. . . ………………………….

104

Successor Housing Agency………. . ……………. . . …………………………………. .

105

American Rescue Plan Act………. . ……………. . . …………………………………. .

106

Pension Plan Funding Status

Schedule of Proportionate Share of Net Pension Liability…. . …………………….

107

Schedule of Pension Plan Contributions…. . …. . . ……………………………………

108

Other Postemployment Benefits Plan Funding Status

Schedule of Changes in the Net OPEB Liability and Related Ratios. …………….

109

Schedule of OPEB Plan Contributions……. . …. . . ……………………………………

110

Notes to the Required Supplementary Information………………………………………….

111

Supplementary Information

Major Funds

Budgetary Comparison Schedules. . . . . …………………………………………. . ……

114

Non-Major Governmental Funds Financial Statements:

Combining Balance Sheet………………………………………………………. . ……

117

Combining Statement of Revenues, Expenditures and Changes in Fund

Balances………………………………………………………. . . ……………………

119

Budgetary Comparison Schedules……………………………………. . …………….

121

Internal Service Funds:

Combining Statement of Net Position. . . ………………………………. . ……………

133

Combining Statement of Revenues, Expenses and Changes in Net

Position…………………………………………………………. . . ………………….

134

Combining Statement of Cash Flows………………………………. . ………………

135

Agency Funds:

Combining Statement of Changes in Assets and Liabilities………………. . ……. .

137

2

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

STATISTICAL SECTION (UNAUDITED)

Statistical Section Table of Contents…………………………………………………..

142

Financial Trends

Net Position by Component ……………………………………………………………

143

Changes in Net Position ……………………………………………………………….

145

Fund Balances of Governmental Funds ……………………………………………….

147

Changes in Fund Balances of Governmental Funds …………………………………..

149

Revenue Capacity

Property Tax Levies and Collections ……………………………………………..........

151

Assessed Value and Estimated Actual Value of Taxable Property ……………………

152

Taxable Assessed Value by Source ………………………………………………

153

Property Tax Rates …………………………………………………………………….

155

Principal Property Tax Payers ………………………………………………………..

157

Debt Capacity

Ratios of Debt Outstanding ……………………………………………………….......

159

Computation of Direct and Overlapping Debt ……….……………………………….

160

Legal Debt Margin ………………………………………………………………….....

161

Bonded Debt Pledged Revenue Coverage ………………………………………………..

163

Demographic and Economic Information

Demographic and Economic Statistics …………………………………………………

164

Operating Information

Full-time Equivalent City Employees by Function …………………………………….

165

Operating Indicators by Function ………………………………………………………

167

Capital Asset Statistics by Function ……………………………………………………

169

General Information …………………………………………………………………….

171

ADDITIONAL REPORTS

Independent Auditors’ Report on Internal Controls over Financial Reporting

and on Compliance and other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards …………………….

173

3

CITY COUNCIL

COMMUNITY

CARL “CW” WOLFE, MAYOR

PETER CLOVEN, VICE MAYOR

DEVELOPMENT

(925) 673‐7340

6000 HERITAGE TRAIL CLAYTON, CALIFORNIA 94517‐1250

JEFF WAN, COUNCILMEMBER

ENGINEERING

(925) 969‐8181

TELEPHONE (925) 673‐7300 FAX (925) 672‐4717

JIM DIAZ, COUNCILMEMBER

HOLLY TILLMAN , COUNCILMEMBER

January 23, 2023

Honorable Mayor and Members of the City Council

City of Clayton

We are pleased to submit the City of Clayton’s Annual Comprehensive Financial Report (ACFR) for the Fiscal year ended June 30, 2022. Since its incorporation, the City has submitted an annual audited Financial Report to the City Council and its citizens in accordance with California Government Code section 25253. The ACFR provides the public, businesses, property owners, investors and all interested parties with an overview of the City’s finances. It is important to note the acronym for this report has changed from CAFR to ACFR as the prior acronym can be considered an offensive racial slur and is no longer used. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an “unmodified opinion” (the highest rating) on the report by an independent certified public accounting firm, Cropper Rowe, LLP.

Although we rely on the standards and expertise of these independent auditors, the responsibility for the accuracy and fair representation of the ACFR ultimately rests with City management. We believe the data presented in this Report is accurate in all material respects and all statements and disclosures have been included necessary for the reader to obtain a thorough understanding of the City’s financial activities. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile reliable and timely information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh its benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that its financial statements will be free from material misstatements.

For readers interested in a more detailed review of the City’s financial statements, a section in the ACFR called “Management Discussion and Analysis” (MD&A) has been included in accordance with Government Accounting Standards Board (GASB) Statement 34, Basic Financial Statements – And Management’s Discussion and Analysis – For State and Local Governments . The MD&A recounts the financial highlights of the City and provides additional analyses on the variances and trends reported as part of the financial statements. The MD&A further discloses significant items impacting the financial condition of the City and is designed to be read in conjunction with this Letter of Transmittal.

City Profile

The City of Clayton was incorporated in 1964 and is located in Contra Costa County, a suburban region in the eastern portion of the San Francisco-Bay Area. Pursuant to its adopted budget for the fiscal year ending June 30, 2022, the City has a permanent staff of 27.4 full- time equivalent employees which serves approximately 11,585 residents in a land area of approximately 4 square miles. Nestled in a small valley at the northern base of Mt. Diablo, the boundaries of the City are mostly developed with a

4

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

City Profile , continued

strong community emphasis on open space preservation and maintenance of an extensive network of trails. The City continues to show strength as a safe community with attractive residential neighborhoods as a gateway to the fast paced and robust Bay Area economy.

The City operates under a Council- Manager form of government and provides many essential public services to the community. The City is governed by a five-member City Council elected at large, serving staggered terms of four years. The Mayor and Vice Mayor are selected by the City Council each year from its membership and serve one-year terms. The City Council is responsible for setting policies, adopting City ordinances, resolutions, the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney, among other key duties. The City Manager is responsible for implementing the City Council’s policies, ordinances and directives, overseeing the daily operations of the City, and appointing all department heads and through them all other employees of the City.

As presented in the City’s government-wide statement of activities, pursuant to GASBS 34, the City’s numerous departments and restricted- use funds accounting for public services are consolidated into higher-level programs , which include: public safety, public works, parks and recreation services, community and economic development, and general government. The public safety program is composed of an in-house police department, staffed with eleven (11) full-time sworn police officers and two (2) administrative personnel dedicated to the function of police services. Public works tracks the maintenance of public landscaping (i.e. street medians and shoulders, sub-division entryways, etc.), facilities, transportation infrastructure (i.e. streets, lighting, traffic signals, etc.), as well as contract City engineering services for management of the City’s Capital Improvement Program as well as land development regulatory needs. In their capacity of providing parks and recreation services, the City’s in-house maintenance department oversees the maintenance of the Clayton Community Library, the Clayton Community Park, The Grove Park, various neighborhood parks, and the historic Endeavor Hall rental facility. The community and economic development program consists of two (2) in-house staff providing planning and land-use regulatory services as well as the functions of economic development and affordable housing. Finally, the general government program reports legislative and support costs indispensable in providing in-house public services and maintains compliance an ever-expanding list of legal, fiscal and other statutory requirements imposed by the State of California.

The City’s fiscal year runs from July 1st through June 30th . Each year, the City Manager presents an annual budget to the City Council for adoption by Resolution on or before June 30th in accordance with Clayton Municipal Code section 3.02.040. On an interim basis the budget is monitored continually with the budgetary level of control maintained at the fund level.

Economic Condition and Outlook

Essentially a cul-de-sac hugging the base of acclaimed Mt. Diablo, Clayton maintains a small-town atmosphere while its relative proximity to California State Highway 24 and neighboring city BART stations make it ideal for commuters. In addition, the semi-rural setting, low crime rate and excellent middle and elementary public schools make Clayton attractive to families of all types.

5

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Economic Condition and Outlook, continued

Its residents are generally highly educated with approximately 57.8% of adults greater than age 25 having a bachelor’s degree or higher. In June of 2022, the unemployment rate of the City was 3.0%, compared to 3.20% and 4.0% for Contra Costa County and the State of California, respectively. In 2020 the median household income in the City was $153,607 compared to $87,355 for the state. The median age of Clayton residents is 43.1 as of the 2021 calendar year. The median sales price of homes in Clayton at June 30, 2022 was $ 1,050,000, a 8.7% year over year decrease. Despite this decline, property tax and sales & use tax revenues remain relatively strong.

In order, the City General Fund’s top revenue sources are: in-lieu vehicle license fees (VLF – paid from the state’s portion of property taxes); secured property taxes; franchise fees; and sales & use taxes (including the state- allocated “triple flip” prior to the fiscal year ending June 30, 2017). The following chart illustrates the ten-year trend of these four major revenue sources for the City taken from the 2022-23 Adopted Budget:

6

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Altogether, these four primary revenue sources (Property Tax In-Lieu 22.1%, Property Taxes 20.6%, Franchise Fees 10.7%, Sales and Use Taxes 10.5%) comprise 63.9% of General Fund revenues per the adopted budget for the fiscal year ending June 30, 2023. A non-recurring spike was realized in sales and use taxes six years ago in the year ended June 30, 2017 attributable to the City receiving a final true-up Triple Flip allocation from the state following the statutory dissolution of this process effective January 1, 2017. Accordingly, the following year realized a dip back to “normal” sales & use tax trend levels. In the long-run however, given the suburban composition of the City and its geographic boundaries limiting future development, management anticipates slow growth for the next ten years in sales & use taxes and franchise fees and moderate growth in property tax revenue (including in-lieu VLF property taxes received from the state) . With increasing telecommunications technologies, cable-based franchise fees could be a declining or at-risk revenue, while other factors such as weather patterns and sustainable energy trends could impact similar franchise fee revenue. Given the recent U.S. Supreme Court South Dakota v. Wayfair ruling, it is reasonably possible the City will see an increase in sales & use tax revenue in forthcoming years with the definition of eligible taxable sales transactions now potentially including all online sales where “substantial nexus” requirements exist with online sellers in California.

Long‐Term Financial Planning

As of the year ended June 30, 2022, the City of Clayton’s financial condition remains sound. An indicator of financial condition is the level of fund balances, both reserved and unreserved, in the City’s General Fund. The City Council has directed an absolute minimum reserve of $250,000 as its never-to-be-expended “catastrophic reserve.” In practice, due to the effectiveness in fiscal management, this policy has been easily achieved, indicating perhaps this floor requirement should be elevated in the future. However, the standing Policy Goal of the City Council is to establish and retain an undesignated reserve of 50% the annual General Fund operating budget. At June 30, 2022, the total unassigned General Fund reserve balance is $6,068,266 or .97 times the size of the adopted General Fund operating budget for the fiscal year ending June 30, 2022. This means in an emergency scenario, the City could operate over an entire year on reserves alone.

The City of Clayton maintains a five-year Capital Improvement Program (CIP), which serves as its planning document to ensure its infrastructure is well maintained. The City prioritizes roads for maintenance and reconstruction based on the relative pavement condition index, with other infrastructure and facility improvement projects prioritized at the discretion of the City Council. Over the course of the last 10 years the City has invested approximately $1.0 million into facility and infrastructure capital improvements, funded by Highway User Tax Apportionments (i.e. HUTA or “gas taxes”), local Measure J taxes, redevelopment property tax increment allocations (prior to the dissolution of the Clayton Redevelopment Agency in 2012), and other state and federal grants. For the upcoming fiscal year ending June 30, 2023, the City’s CIP is expected to invest an additional $1,362,697 into transportation and general infrastructure maintenance and improvement needs of the community.

7

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Acknowledgements

The preparation of an ACFR cannot be accomplished without the professional, efficient and dedicated services of the Admin/Finance/Legal Department staff (in particular, Accounting Technician Jennifer Giantvalley), and the independent accounting firm of Cropper Rowe, LLP. We also thank the honorable members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully Submitted,

Reina J. Schwartz Nitish Sharma

City Manager Finance Director (Interim)

8

OUR MISSION

To be of exemplary service to the Clayton community with an emphasis on:

OUR VALUES

 Courtesy  Inclusiveness

 Creativity  Informed risk taking

 Diversity  Open communication

 Employee participation  Professionalism

 Ethical behavior  Trustworthiness

 Fiscal responsibility

OUR VISION

The City of Clayton organization will be recognized as a premier small city. Customer service will be our hallmark; organizational processes will be a model of efficiency and effectiveness; innovation will be common place; and excellence of work product will be the norm. The employees will enjoy their work environment, and each will be a valued and respected member in his or her field of work. All residents and the City Council will be proud of their City government.

9

Finance Director

10

DIRECTORY OF PRINCIPAL OFFICIALS AND ADVISORY BODIES

As of report issuance

CITY COUNCIL

Jeff Wan, Mayor

Jim Diaz, Vice Mayor

Peter Cloven, Councilmember

Holly Tillman, Councilmember

Kim Trupiano, Councilmember

COMMISSIONS

Planning Commission

COMMITTEES

Trails and Landscaping Committee

APPOINTED OFFICIALS AND DEPARTMENT HEADS

Reina Schwartz

City Manager

Hank Stratford

City Treasurer

Nitish Sharma

Finance Director (Interim)

Richard McEachin

Chief of Police

Janet Calderon

City Clerk / HR Manager

Dana Ayers

Community Development Director

Jim Warburton

Maintenance Supervisor

Malathy Subramanian

City Attorney (contract)

Larry Theis

City Engineer (contract)

FINANCE TEAM

Jennifer Giantvalley

Accounting Technician

Richard Sanders

Accountant (consultant)

11

Regional Map of Clayton, California

And Nearby Cities

12

This page intentionally left blank

13

FINANCIAL SECTION

14

This page intentionally left blank

15

INDEPENDENT AUDITORS’

REPORT

16

INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, Clayton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Clayton’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Clayton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

17

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Clayton’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension plan funding status, other postemployment benefits plan funding status, and budgetary comparison information on pages 21-31 and 103-111 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clayton’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and

18

19

MANAGEMENT’S DISCUSSION AND ANALYSIS

20

Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2022. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2022, by $45,759,874. Of this amount, $5,744,418 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.

Changes in Net Position - The City's total net position increased by $337,870 in the fiscal year ending June 30, 2022. Net position of governmental activities increased by $381,717, while net position of business-type activities decreased by $43,847.

Major Fund Highlights

Governmental Funds – As of the year ended June 30, 2022, the City's governmental funds reported a combined ending fund balance of $17,172,907. Of this amount $5,744,867 represents "unassigned fund balances" available for appropriation.

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two reported as net position . Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Clayton is improving or deteriorating.

21

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues ( governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long- term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities .

22

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.

Proprietary Funds

The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds

The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a private-purpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 55-101 of this report.

23

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post -employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,759,874 at June 30, 2022, which is an increase of $392,782 from the prior year’s restated net position at June 30, 2021.

The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Assets

2022

2021

2022

2021

2022

2021

Current Assets

$

14,773,722

$

14,812,813

$

(120,893)

$

(112,174)

$

14,652,829

$

14,700,639

Noncurrent Assets

6,482,003

6,462,021

-

-

6,482,003

6,462,021

Capital Assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Total Assets

50,371,930

50,068,519

888,310

925,902

51,260,240

50,994,421

Deferred outflows

1,285,641

1,051,589

-

-

1,285,641

1,051,589

Liabilities

Current Liabilities

640,113

362,937

8,171

1,916

648,284

364,853

Noncurrent Liabilities

3,666,339

5,944,104

-

-

3,666,339

5,944,104

Total Liabilities

4,306,452

6,307,041

8,171

1,916

4,314,623

6,308,957

Deferred inflows

2,471,384

369,961

-

-

2,471,384

369,961

Net Position

Net investment in

capital assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Restricted

9,890,048

13,156,670

-

-

9,890,048

13,156,670

Unrestricted

5,873,482

2,492,751

(129,064)

(114,090)

5,744,418

2,378,661

Total net position

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

24

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

Of the City’s total net position, $9,890,048 (21.6%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $5,744,418 (12.6%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $9,359,704, while expenses totaled $9,021,834, resulting in a net increase in net position of $337,870 excluding transfers, extraordinary and special items. This net increase was primarily attributable to a increase in net position of governmental activities, which is discussed in greater detail in the following section.

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Revenues:

2022

2021

2022

2021

2022

2021

Program revenues:

Charges for Services

$

1,002,338

$

961,910

$

16,847

$

(1,442)

$

1,019,185

$

960,468

Operating grants and contributions

2,755,382

893,718

-

-

2,755,382

893,718

Capital grants and contributions

120,774

42,363

-

-

120,774

42,363

Total program revenues

3,878,494

1,897,991

16,847

(1,442)

3,895,341

1,896,549

General revenues:

Property taxes

2,846,766

2,722,906

-

-

2,846,766

2,722,906

Special parcel taxes

1,348,657

1,309,373

-

-

1,348,657

1,309,373

Sales and use taxes

563,908

510,029

-

-

563,908

510,029

Business license taxes

162,881

90,872

-

-

162,881

90,872

Franchise fees

587,740

567,350

-

-

587,740

567,350

Payments in lieu of taxes

174,443

171,029

-

-

174,443

171,029

Investment income

(281,502)

508,256

(379)

(281,502)

507,877

Miscellaneous

54,512

38,972

-

-

54,512

38,972

Gain (loss) on sale of assets

6,958

1,741

-

-

6,958

1,741

Total general revenues

5,464,363

5,920,528

(379)

5,464,363

5,920,149

Total revenues

9,342,857

7,818,519

16,847

(1,821)

9,359,704

7,816,698

Expenses:

General government

2,629,048

1,796,454

-

-

2,629,048

1,796,454

Public works

2,509,096

2,909,710

-

-

2,509,096

2,909,710

Public safety

2,736,817

2,980,000

-

-

2,736,817

2,980,000

Community and economic

development

356,450

357,133

-

-

356,450

357,133

Parks and recreation services

729,729

592,433

-

-

729,729

592,433

Endeavor Hall

-

-

60,694

73,117

60,694

73,117

Total expenses

8,961,140

8,635,730

60,694

73,117

9,021,834

8,708,847

Change in Net Position

381,717

(817,211)

(43,847)

(74,938)

337,870

(892,149)

Net Position – Beginning, restated

44,498,018

45,260,317

923,986

998,924

45,422,004

46,259,241

Net Position – ending

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

25

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

The increase in net position of the governmental activities over the prior year was primarily attributable to a increase in both operating and capital grants and contributions. Total expenses were $8,961,140 in the current year compared to $8,635,730 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2022 and 2021:

Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

Total program revenues from governmental activities were $ 3,878,494 in the current year compared to $1,897,991 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 25.8% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 74.2% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues.

26

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

Total general revenues from governmental activities decreased by $456,165 (7.7%) over the prior year. The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2022 and 2021:

Governmental Activities

Revenues by Source

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-

$(1,000,000)

Fiscal Year 2021

Fiscal Year 2022

Analysis of Business-Type Activities

Total business-type expenses decreased 20.4% from $73,117 in the prior year to $60,694 in the current year. This decrease is largely attributable to the decrease in general and administrative costs of the Endeavor Hall rental facility. Total services revenue increased significantly from $-1,442 in the prior year to $16,847 in the current year due to the increase in rental activity. Net position of business -type activities declined $43,847 to a total of $ 880,139 at June 30, 2022 due to charges for services being insufficient to cover the annual depreciation expense and general operating expenses of underlying Endeavor Hall rental facility assets.

27

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,172,907. Of this amount, $5,744,867 (33.5%) is unassigned; $173,471(1.0%) is in non-spendable form; $3,330,153 (19.4%) is assigned for specific purposes; $6,719,595 (39.1%) is restricted by law, regulation, or other outside contractual agreements; and $1,204,821 (7.0%) is committed for specific expenditures in the future.

General Fund

The City’s General Fund reported an increase in fund balance of $249,464 (4.0%) in the current fiscal year. This modest increase is mostly attributable to increase in property taxes, special parcel taxes and assessments, and a corresponding decrease in investment earnings (primarily due to market rate adjustments). Total fund balance of the General Fund is $6,413,357 as of June 30, 2022, of which $5,744,867 (89.6%) is reported as unassigned and available for appropriation. This unassigned fund balance is .92 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2022.

Below is a summary of the General Fund expenditures by department.

Pandemic

Rainy

Recovery

General government

General Fund

Day Fund

Reserve

Total

$

1,447,700

$

26,000

$

1,096,717

$

2,570,417

Public safety

2,684,319

-

-

2,684,319

Public works

333,423

-

-

333,423

Community and

economic development

299,175

-

-

299,175

Parks and recreation

services

336,592

-

-

336,592

Capital outlay

22,168

-

-

22,168

Total expenditures

$

5,123,377

$

26,000

$

1,096,717

$

6,246,094

Landscape Maintenance District

Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported a decrease in fund balance of $447,353 (41.2%) in the current fiscal year. This decrease in fund balance is largely attributable to increases in operating costs such as water service and weed abatement, as well as a increase in project costs/capital outlay costs. Total fund balance of the Landscape Maintenance District is $ 638,533 as of June 30, 2022, of which $ 32,509 is reported as assigned or restricted for the following year’s operating budget, and the remaining fund balance is assigned.

28

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

The Successor Housing Agency special revenue fund reported a increase in fund balance of $187,452 (3.4%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,617,695 as of June 30, 2022, which is classified entirely as restricted.

Capital Improvement Program

The Capital Improvement Program capital projects fund reported an increase in fund balance of $681,698 (35.4%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $2,606,444 and is reported entirely as assigned for capital projects as of June 30, 2022.

Analysis of Proprietary Funds

The City of Clayton's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $880,139, and total net position for the internal service funds amounted to $1,000,736.

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund actual revenues and transfers fall short of total revenues and transfers of the final and adopted budget by $39,744. The variance is due to a combination of factors including an increase in taxes and assessment and a decrease in the investment reported at year-end based on the market rate. The unrealized investment loss was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run-in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by $186,163 (6.9%), which was largely offset by lower-than-expected revenue from permits, licenses and fees and sales tax receipts.

29

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

Actual General Fund expenditures of $6,246,094 were more than the final adjusted budget by $1,447,307 for the year ended June 30, 2022. The negative variance is a result of actual expenditures being more than budgeted in General government due to investments in the capital expenditures for the fiscal year ended June 30, 2022.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $30,125,408 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,048,171, versus $1,080,713 in the prior year. The slight decrease in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years and capital assets reaching their estimated useful lives. Additional information on the City of Clayton's capital assets can be found in Note 6 of this report.

Debt Administration

The remaining debt of the former Clayton Redevelopment Agency (RDA) of $ 5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012) . The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 13 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.

There was an increase in adopted General Fund operating appropriations when compared to the actuals reported as of June 30, 2022, for the upcoming fiscal year ending June 30, 2023 of $641,365 (10.2%) . The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments and capital improvement costs included as part of the general government. The annual June 2021 to June 2022 consumer price index inflationary factor is 6.8% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2023 projects total General Fund revenues of $6,887,459 an increase of approximately

30

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

$34,920 over the prior year actual. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2022.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517.

31

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

32

City of Clayton

Government-Wide

Statement of Net Position

June 30, 2022

Governmental

Business-Type

ASSETS

Activities

Activites

Total

Current Assets:

Cash and investments

$

13,441,679

$

-

$

13,441,679

Accounts receivable (net of allowances)

1,133,315

-

1,133,315

Interest receivable

25,257

-

25,257

Internal balances

120,893

(120,893)

-

Prepaid expenses

52,578

-

52,578

Total Current Assets

14,773,722

(120,893)

14,652,829

Noncurrent Assets:

Investment in affordable housing

3,170,453

-

3,170,453

Notes receivable

3,311,550

-

3,311,550

Nondepreciable assets

3,133,754

167,738

3,301,492

Depreciable assets, net

25,982,451

841,465

26,823,916

Total Noncurrent Assets

35,598,208

1,009,203

36,607,411

Total Assets

50,371,930

888,310

51,260,240

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows related to pension

1,285,641

-

1,285,641

Deferred outflows related to OPEB

-

-

-

Total Deferred Outflows of Resources

1,285,641

-

1,285,641

LIABILITIES

Current Liabilites:

Accounts payable

149,907

2,671

152,578

Deposits payable

-

5,500

5,500

Accrued payroll

37

-

37

Unearned revenue

332,166

-

332,166

Compensated absences payable

83,645

-

83,645

Other liabilities

74,358

-

74,358

Total Current Liabilities

640,113

8,171

648,284

Noncurrent Liabilites:

Compensated absences payable

83,645

-

83,645

Net OPEB liability

578,315

-

578,315

Net pension liability

2,759,739

-

2,759,739

Lease payable

244,640

-

244,640

Total Noncurrent Liabilities

3,666,339

-

3,666,339

Total Liabilities

4,306,452

8,171

4,314,623

DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to pension

2,471,384

-

2,471,384

Deferred inflows related to OPEB

-

-

-

Total Deferred Inflows of Resources

2,471,384

-

2,471,384

NET POSITION

Net investment in capital assets

29,116,205

1,009,203

30,125,408

Restricted for special projects and programs

9,890,048

-

9,890,048

Unrestricted

5,873,482

(129,064)

5,744,418

Total Net Position

$

44,879,735

$

880,139

$

45,759,874

The accompanying notes are an integral part of the financial statements

33

City of Clayton

Government-Wide

Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

Operating

Capital

Charges

Grants and

Grants and

Governmental Business-type

Functions/Programs

Expenses

for Services

Contributions

Contributions

Activities

Activities

Total

Primary Government:

Governmental Activities

General government

$

2,629,048

$

437,626

$

13,808

$

-

$

(2,177,614)

$

-

$

(2,177,614)

Public safety

2,736,817

48,292

397,461

-

(2,291,064)

-

(2,291,064)

Public works

2,509,096

331,218

2,344,113

44,634

210,869

-

210,869

Community and economic development

356,450

142,299

-

76,140

(138,011)

-

(138,011)

Parks and recreation services

729,729

42,903

-

-

(686,826)

-

(686,826)

Total Governmental Activities

8,961,140

1,002,338

2,755,382

120,774

(5,082,646)

-

(5,082,646)

Business-Type Activities

(43,847)

(43,847)

Endeavor Hall

60,694

16,847

-

-

-

Total Business-Type Activities

60,694

16,847

-

-

-

(43,847)

(43,847)

Total Primary Government

$

9,021,834

$

1,019,185

$

2,755,382

$

120,774

(5,082,646)

(43,847)

(5,126,493)

General revenues:

Taxes:

Property taxes

2,846,766

-

2,846,766

Special parcel taxes

1,348,657

-

1,348,657

Sales and use taxes

563,908

-

563,908

Business license taxes

162,881

-

162,881

Total Taxes

4,922,212

-

4,922,212

Franchise fees

587,740

-

587,740

Payments in lieu of taxes

174,443

-

174,443

Investment income (loss)

(281,502)

-

(281,502)

Other miscellaneous general revenues

54,512

-

54,512

Gain (loss) on disposal of fixed assets

6,958

-

6,958

Total general revenues and transfers

5,464,363

-

5,464,363

Change in net position

381,717

(43,847)

337,870

Net position - beginning, as restated

44,498,018

923,986

45,422,004

Net position - ending

$

44,879,735

$

880,139

$

45,759,874

The accompanying notes are an integral part of the financial statements

34

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35

FUND FINANCIAL STATEMENTS

36

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37

GOVERNMENTAL FUNDS

Governmental Funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources. All governmental funds can be classified into one of five fund types: the General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

General Fund:

The General Fund is the main operating fund of the City and is presented as a major fund. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds:

Special revenue funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The following are reported as major special revenue funds:

Landscape Maintenance District - Community Facilities District (CFD) No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, accounts for real property voter-approved special parcel taxes collected to maintain arterial landscaping and open space within the City (CFD No. 2007-1 sunsets in 2027).

Successor Housing Agency - Accounts for the activities related to the assets assumed by the City of Clayton as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Clayton.

American Rescue Plan Act – Accounts for the activities related to the grant funding received from the American Rescue Plan Act.

Capital Projects Funds:

Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. The following is the City’s sole major capital projects fund:

Capital Improvement Program - Accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.

Non-major Governmental Funds:

All non-major governmental funds of the City are aggregated and presented on the face of the basic financial statements in one column.

38

City of Clayton

Governmental Funds

Balance Sheet

June 30, 2022

Special Revenue

Landscape

Maintenance

Successor

General Fund

District

Housing Agency

ASSETS

Cash and investments

$

5,985,880

$

693,391

$

1,857,892

Accounts receivable

646,294

-

-

Interest receivable

25,257

-

-

Investment in affordable housing

-

-

3,170,453

Notes receivable

-

-

3,311,550

Prepaid items

52,578

-

-

Due from other funds

120,893

-

-

Advance to other funds

-

-

-

Total Assets

$

693,391

$

6,830,902

$

8,339,895

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable

$

1,826

$

54,858

$

-

Other payables

71,658

-

-

Accrued payroll

37

-

-

Compensated absences

83,645

-

-

Unearned revenue

-

-

-

Total Liabilities

157,166

54,858

-

Deferred Inflows of Resources:

Deferred revenue

260,379

-

2,722,200

Total Deferred Inflows of Resources

-

260,379

2,722,200

Fund Balance:

Non-spendable

173,471

-

-

Restricted

-

32,509

5,617,695

Committed

495,019

-

-

Assigned

-

606,024

-

Unassigned

5,744,867

-

-

Total Fund Balance

638,533

6,413,357

5,617,695

Total Liabilities, Deferred Inflows

$

6,830,902

$

693,391

$

8,339,895

of Resources and Fund Balances

The accompanying notes are an integral part of the financial statements

39

City of Clayton

Governmental Funds

Balance Sheet

June 30, 2022

Capital Project

Capital

Other

American

Improvement

Governmental

Rescue Plan Act

Program

Funds

Total

$

-

$

2,674,360

$

1,769,715

$

12,981,238

-

-

487,021

1,133,315

-

-

-

25,257

-

-

-

3,170,453

-

-

-

3,311,550

-

-

-

52,578

-

-

-

120,893

-

-

-

-

$

-

$

2,674,360

$

2,256,736

$

20,795,284

$

-

$

67,916

$

24,992

$

149,592

-

-

2,700

74,358

-

-

-

37

-

-

-

83,645

-

-

332,166

332,166

-

67,916

359,858

639,798

-

-

-

2,982,579

-

-

-

2,982,579

-

-

-

173,471

-

-

1,069,391

6,719,595

-

-

709,802

1,204,821

-

2,606,444

117,685

3,330,153

-

-

-

5,744,867

-

2,606,444

1,896,878

17,172,907

$

-

$

2,674,360

$

2,256,736

$

20,795,284

The accompanying notes are an integral part of the financial statements

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41

City of Clayton

Reconciliation of Governmental Funds Balance Sheet to the

Statement of Net Position

June 30, 2022

Total Fund Balances - Governmental Funds

$

17,172,907

Amounts reported for governmental activities in the Statement of Net Position are different because:

CAPITAL ASSETS

Capital assets used in governmental activities are not current financial resources and therefore are

not reported in the Governmental Funds Balance Sheet.

Non-depreciable capital assets

3,133,754

Depreciable capital assets (net of internal service fund assets of $493,547)

25,441,841

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES

Unavailable revenue which are deferred inflows of resources in the Governmental Funds because

they are not available currently, but are taken into revenue in the statement of activities.

2,982,579

LONG-TERM ASSETS AND LIABILITIES

Long-term liabilities are not due and payable in the current period and therefore are not reported

in the Governmental Funds Balance Sheet.

Net OPEB liability not reported on the Governmental Funds Balance Sheet

(578,315)

Compensated absences payable

(83,645)

Net pension liability not reported on the Governmental Funds Balance Sheet

(2,759,739)

Lease liability not reported on the Governmental Funds Balance Sheet

(244,640)

DEFERRED INFLOWS AND OUTFLOWS

Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance

Sheet

Deferred outflows of resources for net pension liability

1,285,641

Deferred inflows of resources for net pension liability

(2,471,384)

Deferred outflows of resources for net OPEB liability

-

Deferred inflows of resources for net OPEB liability

-

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION

Internal service funds are used by management to charge the costs of certain activities to

individual funds. The assets and liabilities of the internal service funds are included in the

governmental activities in the Government-wide Statement of Net Position.

1,000,736

Net Position of Governmental Activities

$

44,879,735

The accompanying notes are an integral part of the financial statements

42

City of Clayton

Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance

For the year ended June 30, 2022

Special Revenue

Landscape

Successor

Maintenance

Housing

General Fund

District

Agency

REVENUES

Property taxes

$

2,846,766

$

-

$

-

Program income

-

-

111,400

Special parcel taxes and assessments

-

1,204,882

-

Sales and use taxes

563,908

-

-

Business licenses

162,881

-

-

Permits, licenses and fees

114,026

-

-

Fines, forfeitures and penalties

151,409

-

-

Intergovernmental

135,233

-

-

Motor vehicle in-lieu fees

-

-

-

Other in-lieu fees

174,443

-

-

Franchise fees

587,740

-

-

Service charges

305,645

-

-

Use of money and property

(185,018)

(24,383)

17,961

Other revenue

40,844

-

-

Total Revenues

4,897,877

1,180,499

129,361

EXPENDITURES

Current:

General government

2,570,417

-

-

Public safety

2,684,319

-

-

Public works

333,423

1,424,676

-

Community and economic development

299,175

-

-

Parks and recreation services

336,592

-

-

Capital outlay

22,168

161,367

-

Total Expenditures

6,246,094

1,586,043

-

Excess (Deficiency) of Revenues

(1,348,217)

(405,544)

129,361

Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)

Unrealized gains (losses)

-

-

58,091

Transfers in

1,597,681

-

-

Transfers out

-

(41,809)

-

Total Other Financing Sources (Uses)

1,597,681

(41,809)

58,091

Net Change in Fund Balances

249,464

(447,353)

187,452

FUND BALANCES

Beginning of year, restated

6,163,893

1,085,886

5,430,243

End of fiscal year

$

6,413,357

$

638,533

$

5,617,695

The accompanying notes are an integral part of the financial statements

43

City of Clayton

Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance

For the year ended June 30, 2022

Capital Project

Other

Capital

American

Improvement

Governmental

Rescue Plan Act

Program

Funds

Total

$

-

$

-

$

-

$

2,846,766

-

-

-

111,400

-

-

442,230

1,647,112

-

-

-

563,908

-

-

-

162,881

-

-

140,326

254,352

-

-

-

151,409

1,467,024

-

1,170,041

2,772,298

-

-

-

-

-

-

-

174,443

-

-

-

587,740

-

-

-

305,645

-

(80,986)

(52,490)

(324,916)

-

-

648

41,492

1,467,024

(80,986)

1,700,755

9,294,530

-

-

126,650

2,697,067

-

-

130,541

2,814,860

-

-

383,356

2,141,455

-

-

-

299,175

-

-

140,808

477,400

-

869,925

48,889

1,102,349

-

869,925

830,244

9,532,306

1,467,024

(950,911)

870,511

(237,776)

-

-

-

58,091

-

1,632,609

21,214

3,251,504

(1,467,024)

-

(1,742,671)

(3,251,504)

(1,467,024)

1,632,609

(1,721,457)

58,091

-

681,698

(850,946)

(179,685)

-

1,924,746

2,747,824

17,352,592

$

-

$

2,606,444

$

1,896,878

$

17,172,907

The accompanying notes are an integral part of the financial statements

44

City of Clayton

Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund

Balances to the Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are different because:

ACCRUAL OF NON-CURRENT ITEMS

The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).

Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) Long-term compensated absences payable

Net change in pension liability and deferred inflows (outflows).

Unavailable revenues

Net change in lease liability

CAPITAL ASSET TRANSACTIONS

Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital asset acquisition, excluding internal service fund asset acquisitions.

Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425).

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY

Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities.

Change in Net Position of Governmental Activities on Statement of Activities

$ (179,685)

(74,942)

(745)

730,720

(113,947)

(244,640)

1,217,507

(947,745)

(4,806)

$ 381,717

The accompanying notes are an integral part of the financial statements

45

PROPRIETARY FUNDS

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City’s proprietary funds can be classified into two fund types: enterprise and internal service funds.

Enterprise Funds:

Enterprise funds are used to report any activity for which a fee is charged to external users for goods or services. The following is the City’s sole major enterprise fund:

Endeavor Hall – Accounts for all rental activities related to operation of the underlying rental facility asset. The primary use of the rental facility has been for wedding receptions and other formal special events.

Internal Service Funds:

The City’s internal service funds account for activities that provide goods or services to other City funds, departments, or agencies on a cost reimbursement basis. All internal service funds of the City are aggregated and presented on the face of the proprietary fund financial statements in one column.

46

City of Clayton

Proprietary Funds

Statement of Net Position

June 30, 2022

Business-type

Governmental

Activities -

Activities -

Endeavor Hall

Internal Service

ASSETS

Current assets:

Cash and investments

$

-

$

460,441

Noncurrent assets

Land

167,738

-

Depreciable assets, net

841,465

540,610

Total Assets

1,009,203

1,001,051

LIABILITIES

Current liabilities:

Accounts payable

2,671

315

Other payables

-

-

Deposits payable

5,500

-

Due to other funds

120,893

-

Total Liabilities

129,064

315

NET POSITION

Net investment in capital assets

1,009,203

540,610

Unrestricted

(129,064)

460,126

Total Net Position

$

880,139

$

1,000,736

The accompanying notes are an integral part of the financial statements

47

City of Clayton

Proprietary Funds

Statement of Revenues, Expenses and Changes in Net Position

For the year ended June 30, 2022

Governmental

Business-type

Activities -

Activities -

Internal Service

Endeavor Hall

Funds

OPERATING REVENUES

Charges for current services

$

16,847

$

111,900

Total Operating Revenues

16,847

111,900

OPERATING EXPENSES

Personnel

4,833

-

General and administrative

26,989

8,564

Depreciation and amortization

28,872

100,425

Total Operating Expenses

60,694

108,989

Operating Income (Loss)

(43,847)

2,911

NONOPERATING REVENUES (EXPENSES)

Gain (loss) on disposal of assets

-

6,958

Investment income

-

(14,675)

Total Nonoperating Revenues (Expenses)

-

(7,717)

Net (loss) Before Contributions and

(43,847)

(4,806)

Operating Transfers

Capital contributions

-

-

Transfers in / (out)

-

-

Change in Net Position

(43,847)

(4,806)

NET POSITION:

Beginning of fiscal year

923,986

1,005,542

End of fiscal year

$

880,139

$

1,000,736

The accompanying notes are an integral part of the financial statements

48

City of Clayton

Proprietary Funds

Statement of Cash Flows

For the year ended June 30, 2022

Business-type

Governmental

Activities -

Activities -

Internal Service

CASH FLOWS FROM OPERATING ACTIVITIES:

Endeavor Hall

Funds

Receipts from customers

$

20,847

$

111,900

Payments to suppliers

(24,734)

(4,001)

Payments to employees

(4,833)

-

Claims paid

-

(4,428)

Net cash provided (used) by operating activities

(8,720)

103,471

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES:

Transfers in / (out)

8,720

-

Net cash provided by noncapital financing

8,720

-

activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES:

Acquisition of fixed assets

-

(153,184)

Proceeds from the sale of capital assets

-

6,958

Net cash provided (used) by capital and related

-

(146,226)

financing activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments

-

(14,675)

Net Cash provided by investing activities

-

(14,675)

Net increase (decrease) in cash and cash equivalents

-

(57,430)

CASH AND CASH EQUIVALENTS:

Beginning of fiscal year

-

517,871

End of fiscal year

$

-

$

460,441

RECONCILIATION OF OPERATING INCOME

(LOSS) TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES:

Operating income (loss)

$

(43,847)

$

2,911

Adjustments to reconcile operating income (loss)

to net cash provided (used) by operating activities:

Depreciation and amortization

28,872

100,425

Changes in current assets and liabilities:

Increase (decrease) in accounts payable

2,255

135

Increase (decrease) in deposits payable

4,000

-

Increase (decrease) in interfund payables

-

-

Net cash provided (used) by operating activities

$

(8,720)

$

103,471

The accompanying notes are an integral part of the financial statements

49

FIDUCIARY FUNDS

Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The City’s fiduciary funds can be classified into two fund types: agency and private purpose trust funds.

Agency Funds:

Agency funds are custodial in nature (assets equal liabilities) and do not involve measurements of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's program. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.

Private Purpose Trust Funds

Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the Fiduciary Net Position and Changes in Fiduciary Net Position for the Successor Agency for the former Redevelopment Agency. Private Purpose Trust Funds are accounted for under the full accrual basis of accounting.

50

City of Clayton

Fiduciary Funds

Statement of Fiduciary Net Position

June 30, 2022

Private Purpose

Trust Fund

Redevelopment

Successor

Agency

Agency Funds

ASSETS

Cash and investments

$

526,807

$

1,632,920

Cash and investments with fiscal agents

1

376,103

Accounts receivable

-

10,188

Other assets

-

967

Assessments receivable

-

655,931

Due from bondholders

-

182,883

Notes receivable

52,607

-

Investment in bonds

-

470,000

Total Assets

579,415

3,328,992

LIABILITIES

Accounts payable

-

16,378

Other liabilities

-

1,455,651

Deposits payable

-

774,539

Accrued interest payable

10,973

-

Advance from Successor Housing Agency

-

-

Notes payable

-

52,606

Bonds payable

1,145,000

1,029,818

Total Liabilities

1,155,973

$

3,328,992

DEFERRED INFLOWS OF RESOURCES

-

Deferred notes receivables

Total Deferred Inflows of Resources

-

NET POSITION

(576,558)

Held in trust for others

Total Net Position

$

(576,558)

The accompanying notes are an integral part of the financial statements

51

City of Clayton

Fiduciary Funds

Statement of Changes in Fiduciary Net Position

For the year ended June 30, 2022

Private Purpose

Trust Fund

Redevelopment

Successor

ADDITIONS

Agency

Tax increment revenue

$

618,554

Program revenue

2,121

Investment gain (loss)

(15,186)

Total Additions

605,489

DEDUCTIONS

Interest expense

24,141

Administrative costs

252,179

Other expenses

-

Total Deductions

276,320

Changes in Net Position

329,169

NET POSITION

Beginning of Year

End of Year

(905,727)

$ (576,558)

The accompanying notes are an integral part of the financial statements

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13

FINANCIAL SECTION

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15

INDEPENDENT AUDITORS’

REPORT

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INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, Clayton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Clayton’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Clayton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

17

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Clayton’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension plan funding status, other postemployment benefits plan funding status, and budgetary comparison information on pages 21-31 and 103-111 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clayton’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and

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MANAGEMENT’S DISCUSSION AND ANALYSIS

20

Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2022. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2022, by $45,759,874. Of this amount, $5,744,418 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.

Changes in Net Position - The City's total net position increased by $337,870 in the fiscal year ending June 30, 2022. Net position of governmental activities increased by $381,717, while net position of business-type activities decreased by $43,847.

Major Fund Highlights

Governmental Funds – As of the year ended June 30, 2022, the City's governmental funds reported a combined ending fund balance of $17,172,907. Of this amount $5,744,867 represents "unassigned fund balances" available for appropriation.

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two reported as net position . Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Clayton is improving or deteriorating.

21

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues ( governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long- term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities .

22

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.

Proprietary Funds

The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds

The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a private-purpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 55-101 of this report.

23

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post -employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,759,874 at June 30, 2022, which is an increase of $392,782 from the prior year’s restated net position at June 30, 2021.

The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Assets

2022

2021

2022

2021

2022

2021

Current Assets

$

14,773,722

$

14,812,813

$

(120,893)

$

(112,174)

$

14,652,829

$

14,700,639

Noncurrent Assets

6,482,003

6,462,021

-

-

6,482,003

6,462,021

Capital Assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Total Assets

50,371,930

50,068,519

888,310

925,902

51,260,240

50,994,421

Deferred outflows

1,285,641

1,051,589

-

-

1,285,641

1,051,589

Liabilities

Current Liabilities

640,113

362,937

8,171

1,916

648,284

364,853

Noncurrent Liabilities

3,666,339

5,944,104

-

-

3,666,339

5,944,104

Total Liabilities

4,306,452

6,307,041

8,171

1,916

4,314,623

6,308,957

Deferred inflows

2,471,384

369,961

-

-

2,471,384

369,961

Net Position

Net investment in

capital assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Restricted

9,890,048

13,156,670

-

-

9,890,048

13,156,670

Unrestricted

5,873,482

2,492,751

(129,064)

(114,090)

5,744,418

2,378,661

Total net position

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

24

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

Of the City’s total net position, $9,890,048 (21.6%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $5,744,418 (12.6%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $9,359,704, while expenses totaled $9,021,834, resulting in a net increase in net position of $337,870 excluding transfers, extraordinary and special items. This net increase was primarily attributable to a increase in net position of governmental activities, which is discussed in greater detail in the following section.

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Revenues:

2022

2021

2022

2021

2022

2021

Program revenues:

Charges for Services

$

1,002,338

$

961,910

$

16,847

$

(1,442)

$

1,019,185

$

960,468

Operating grants and contributions

2,755,382

893,718

-

-

2,755,382

893,718

Capital grants and contributions

120,774

42,363

-

-

120,774

42,363

Total program revenues

3,878,494

1,897,991

16,847

(1,442)

3,895,341

1,896,549

General revenues:

Property taxes

2,846,766

2,722,906

-

-

2,846,766

2,722,906

Special parcel taxes

1,348,657

1,309,373

-

-

1,348,657

1,309,373

Sales and use taxes

563,908

510,029

-

-

563,908

510,029

Business license taxes

162,881

90,872

-

-

162,881

90,872

Franchise fees

587,740

567,350

-

-

587,740

567,350

Payments in lieu of taxes

174,443

171,029

-

-

174,443

171,029

Investment income

(281,502)

508,256

(379)

(281,502)

507,877

Miscellaneous

54,512

38,972

-

-

54,512

38,972

Gain (loss) on sale of assets

6,958

1,741

-

-

6,958

1,741

Total general revenues

5,464,363

5,920,528

(379)

5,464,363

5,920,149

Total revenues

9,342,857

7,818,519

16,847

(1,821)

9,359,704

7,816,698

Expenses:

General government

2,629,048

1,796,454

-

-

2,629,048

1,796,454

Public works

2,509,096

2,909,710

-

-

2,509,096

2,909,710

Public safety

2,736,817

2,980,000

-

-

2,736,817

2,980,000

Community and economic

development

356,450

357,133

-

-

356,450

357,133

Parks and recreation services

729,729

592,433

-

-

729,729

592,433

Endeavor Hall

-

-

60,694

73,117

60,694

73,117

Total expenses

8,961,140

8,635,730

60,694

73,117

9,021,834

8,708,847

Change in Net Position

381,717

(817,211)

(43,847)

(74,938)

337,870

(892,149)

Net Position – Beginning, restated

44,498,018

45,260,317

923,986

998,924

45,422,004

46,259,241

Net Position – ending

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

25

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

The increase in net position of the governmental activities over the prior year was primarily attributable to a increase in both operating and capital grants and contributions. Total expenses were $8,961,140 in the current year compared to $8,635,730 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2022 and 2021:

A graph of red and blue bars  Description automatically generated

Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

Total program revenues from governmental activities were $ 3,878,494 in the current year compared to $1,897,991 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 25.8% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 74.2% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues.

26

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

Total general revenues from governmental activities decreased by $456,165 (7.7%) over the prior year. The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2022 and 2021:

A graph with red and blue bars  Description automatically generated

Governmental Activities

Revenues by Source

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-

$(1,000,000)

Fiscal Year 2021

Fiscal Year 2022

Analysis of Business-Type Activities

Total business-type expenses decreased 20.4% from $73,117 in the prior year to $60,694 in the current year. This decrease is largely attributable to the decrease in general and administrative costs of the Endeavor Hall rental facility. Total services revenue increased significantly from $-1,442 in the prior year to $16,847 in the current year due to the increase in rental activity. Net position of business -type activities declined $43,847 to a total of $ 880,139 at June 30, 2022 due to charges for services being insufficient to cover the annual depreciation expense and general operating expenses of underlying Endeavor Hall rental facility assets.

27

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,172,907. Of this amount, $5,744,867 (33.5%) is unassigned; $173,471(1.0%) is in non-spendable form; $3,330,153 (19.4%) is assigned for specific purposes; $6,719,595 (39.1%) is restricted by law, regulation, or other outside contractual agreements; and $1,204,821 (7.0%) is committed for specific expenditures in the future.

General Fund

The City’s General Fund reported an increase in fund balance of $249,464 (4.0%) in the current fiscal year. This modest increase is mostly attributable to increase in property taxes, special parcel taxes and assessments, and a corresponding decrease in investment earnings (primarily due to market rate adjustments). Total fund balance of the General Fund is $6,413,357 as of June 30, 2022, of which $5,744,867 (89.6%) is reported as unassigned and available for appropriation. This unassigned fund balance is .92 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2022.

Below is a summary of the General Fund expenditures by department.

Pandemic

Rainy

Recovery

General government

General Fund

Day Fund

Reserve

Total

$

1,447,700

$

26,000

$

1,096,717

$

2,570,417

Public safety

2,684,319

-

-

2,684,319

Public works

333,423

-

-

333,423

Community and

economic development

299,175

-

-

299,175

Parks and recreation

services

336,592

-

-

336,592

Capital outlay

22,168

-

-

22,168

Total expenditures

$

5,123,377

$

26,000

$

1,096,717

$

6,246,094

Landscape Maintenance District

Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported a decrease in fund balance of $447,353 (41.2%) in the current fiscal year. This decrease in fund balance is largely attributable to increases in operating costs such as water service and weed abatement, as well as a increase in project costs/capital outlay costs. Total fund balance of the Landscape Maintenance District is $ 638,533 as of June 30, 2022, of which $ 32,509 is reported as assigned or restricted for the following year’s operating budget, and the remaining fund balance is assigned.

28

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

The Successor Housing Agency special revenue fund reported a increase in fund balance of $187,452 (3.4%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,617,695 as of June 30, 2022, which is classified entirely as restricted.

Capital Improvement Program

The Capital Improvement Program capital projects fund reported an increase in fund balance of $681,698 (35.4%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $2,606,444 and is reported entirely as assigned for capital projects as of June 30, 2022.

Analysis of Proprietary Funds

The City of Clayton's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $880,139, and total net position for the internal service funds amounted to $1,000,736.

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund actual revenues and transfers fall short of total revenues and transfers of the final and adopted budget by $39,744. The variance is due to a combination of factors including an increase in taxes and assessment and a decrease in the investment reported at year-end based on the market rate. The unrealized investment loss was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run-in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by $186,163 (6.9%), which was largely offset by lower-than-expected revenue from permits, licenses and fees and sales tax receipts.

29

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

Actual General Fund expenditures of $6,246,094 were more than the final adjusted budget by $1,447,307 for the year ended June 30, 2022. The negative variance is a result of actual expenditures being more than budgeted in General government due to investments in the capital expenditures for the fiscal year ended June 30, 2022.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $30,125,408 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,048,171, versus $1,080,713 in the prior year. The slight decrease in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years and capital assets reaching their estimated useful lives. Additional information on the City of Clayton's capital assets can be found in Note 6 of this report.

Debt Administration

The remaining debt of the former Clayton Redevelopment Agency (RDA) of $ 5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012) . The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 13 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.

There was an increase in adopted General Fund operating appropriations when compared to the actuals reported as of June 30, 2022, for the upcoming fiscal year ending June 30, 2023 of $641,365 (10.2%) . The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments and capital improvement costs included as part of the general government. The annual June 2021 to June 2022 consumer price index inflationary factor is 6.8% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2023 projects total General Fund revenues of $6,887,459 an increase of approximately

30

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

$34,920 over the prior year actual. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2022.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517.

31

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

32

Independent Auditor’s Report

Members of the City Council City of Akutan

Akutan, Alaska

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Akutan, Alaska, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Akutan, Alaska’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Akutan, Alaska, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Akutan, Alaska, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

Change in Accounting Principle

As discussed in Note 14 to the financial statements, in 2022, the City implemented GASB Statement No. 87, Leases, which established standards of accounting and financial reporting for leases by lessees and lessors. The requirements of this Statement apply to financial statements of all state and local governments.

The new standard requires the City to recognize certain lease assets and liabilities for leases. It establishes a single model for lease accounting based on the underlying principle that leases are financings of the right to use an underlying asset for a period of time. Under this Statement, a lessee is required to recognize a liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about the City’s leasing activities. Our opinion is not modified with respect to this matter.

1

3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993 Offices in Juneau and Soldotna A Professional Corporation

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Akutan, Alaska’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information, Schedule of the City’s Proportionate Share of the Net Pension/OPEB Liability (Asset)- Public Employees’ Retirement System, Schedule of the City’s Contributions – Public Employees’ Retirement System, and Notes to the Required Supplementary information on pages 42 and 43-48, respectively, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted Management, Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Akutan, Alaska’s basic financial statements. The information listed in the table of contents as “Supplementary Information”, which includes Major Governmental funds: Schedule of Revenues, Expenditures and changes in fund balance- Budget and Actual (where applicable), Other Governmental Funds: Combining Balance Sheet, Combining Statement of Revenues, Expenditures and Changes in Fund Balances, schedule of expenditures of federal awards and notes to the schedule, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated March 22, 2023, on our consideration of the City of Akutan, Alaska’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Akutan, Alaska’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Akutan, Alaska’s internal control over financial reporting and compliance.

Anchorage, Alaska March 22, 2023